Court sides with Indians, blocks mine until Barrick keeps environmental promises

SANTIAGO, Chile – An appeals court in Chile has ruled against the world’s largest gold mining company, favouring Chilean Indians who accuse the company of contaminating their water downstream.

The judges unanimously ruled that Barrick Gold must keep all its environmental promises before moving forward with construction of the Pascua-Lama mine at the very top of Chile’s mountainous border with Argentina.

The ruling says Barrick also must repair environmental damage to the Estrecho and Huasco rivers, and monitor the condition of three glaciers next to the mine project.

Chile’s environmental watchdog already ordered construction stopped until Barrick builds systems to keep the mine from contaminating the watershed below, but Monday’s ruling also demands river repairs.

Barrick Gold Corp. (TSX:ABX) did not immediately respond to requests for comment from The Associated Press.

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