Tuesday, 19th August 2008 (272 views)

Environmental concerns over plans for a gold mine on the border of Chile and Argentina have been dispelled.

However, Reuters reports that a tax dispute between the two countries has delayed the project, which is being undertaken by Canadian company Barrick Gold - the world's largest gold mining firm.

Chile approved the project a number of months ago but now says that Argentina has failed to respond to proposals for the division of tax.

Already the two nations have agreed to tax gold profits depending on which side of the border it come from, but a dispute remains over taxation of companies providing services on both sides.

Santiago Gonzalez, Chile's mine minister was quoted as saying: "Now it's up to [Argentina's tax] Treaty Commission to call a meeting to discuss and reach a solution."

The Pascua Lama project is expected to cost around $2.4 billion (£1.3 billion), the Toronto Star reported last year.

 

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