Courts tell Goldcorp to suspend El Morro construction
The Supreme Court of Chile suspended Goldcorp's (GG: NYSE; G: TSX) environmental permit for the El Morro copper-gold project.
Goldcorp's shares were off 2.2% to $38.26, while New Gold's shares were off by a steeper 8.35% to $9 a share. El Morro is 70% owned by Goldcorp and 30% owned by New Gold Inc.
Activities not related to site construction, such as security, safety, engineering and architectural planning, will remain underway.
El Morro is located in north-central Chile. Proven and probable reserves (in situ) total 8.4 million ounces of gold and 6.1 billion pounds of copper.
Cost to the build the mine, which was given the green light in Jan. 2012, is $3.9 billion. Full production was forecast for 2018.
Full news release is here.
April 30, 2012
Permit decision suspends El Morro construction
Toronto Stock Exchange: G
New York Stock Exchange: GG
VANCOUVER, April 30, 2012 /CNW/ – GOLDCORP INC. (GG: NYSE; G: TSX) today announced that the Supreme Court of Chile issued a decision on April 27, 2012 suspending the approval of the environmental permit for the El Morro copper-gold project. The approval was issued on March 14, 2011. The ruling states that the permit is suspended until such time as certain deficiencies specifically identified in a paragraph of the Antofogasta Court of Appeals decision are corrected by the Chilean environmental permitting authority (the Servicio de Evaluación Ambiental or SEA).
Sociedad Contractual Minera El Morro ("El Morro"), which is owned 70% by Goldcorp and 30% by New Gold Inc., immediately suspended all project field work being executed under the terms of the permit. Safety and security staff will continue to work to protect the public, project equipment and facilities under construction. Activities not related to site construction, such as detailed engineering, design work and architectural planning, will remain underway.
El Morro will meet with SEA officials to confirm the scope of permitted activities pending SEA's compliance with the court's decision. Until the SEA advises El Morro how it intends to proceed, the specific actions to be taken and time required to complete those actions cannot be determined. However, El Morro expects the process will include additional meetings with the Comunidad Agricola Los Huasco Altinos, who requested the permit review, to consult on the potential impacts of the project on the Comunidad Agricola Los Huasco Altinos and to identify mitigation measures for those impacts. El Morro will co-operate with the SEA to ensure that deficiencies are fully and appropriately addressed.
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. ("Goldcorp"). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Goldcorp to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Goldcorp will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, among others, gold price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks, litigation risks, regulatory restrictions (including environmental regulatory restrictions and liability), activities by governmental authorities (including changes in taxation), currency fluctuations, the speculative nature of gold exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees, additional funding requirements and defective title to mineral claims or property. Although Goldcorp has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations, including economical and political instability in foreign jurisdictions in which Goldcorp operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to indebtedness and the service of such indebtedness, as well as those factors discussed in the section entitled "Description of the Business – Risk Factors" in Goldcorp's annual information form for the year ended December 31, 2011 available at www.sedar.com. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Goldcorp, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.