Barrick Gold (ABX), which is the world’s largest gold company, was recently barred from carrying out its activities in the San Juan province of Argentina, high up in the Andes. The Argentine Supreme Court recently ruled that certain parts of a glacier protection law should apply in the San Juan province of Argentina, where Barrick is building a large mine.
Barrick has maintained that it has never mined anywhere close to glaciers, and respects the environment more than a government could ask for. In this article, I will highlight Barrick’s strengths and show how this development will not dampen Barrick Gold’s future, and show why this stock is still a strong investment.
Barrick’s stock fell by 63 cents to $38.87 on Tuesday, July 3rd, after the supreme court of Argentina decided to stop many of Barrick’s activities at Pascua Lama, the world’s highest-altitude gold mine. Barrick had discovered 18 million ounces of proven gold reserves, and the project was valued at $5 billion. Does this event signal the end of Barrick’s mining activities in Argentina? Not really.
Greenpeace Argentina and the Foundation for Environmental and Natural Resources have long protested mining activities in the Andes, citing several reasons best known to those who are rabidly against any sort of development. It is rather clear that Barrick Gold has followed every rule in the book and the lower courts have previously allowed Barrick to continue its mining activities. The reason why the Supreme Court of Argentina ruled against Barrick is because of the green lobby that has been pressuring certain influential people in the government, and also in the legislative bodies.To continue reading, click here.