Meridian mine plan sparks opposition

When Reno-based Meridian Gold last April announced its plan to merge with Brancote Holdings LLC, Meridian Chief Executive Officer Brian Kennedy called Bancote's Esquel property in Argentine "one of the most exciting undeveloped gold deposits in the world." He probably would appreciate a little less excitement these days.

The project has drawn strong opposition from environmentalists, and Meridian finds itself in a political and legal battle even as it continues preliminary work to develop the mine.

Residents of Esquel will head to the polls on March 24 for a non-binding vote on whether the mine should be allowed.

A couple of days later, city officials will conduct a public hearing on the project.

Environmentalists worry that the use of cynanide at the proposed open-pit mine might pollute aquifers.

The city of 30,000 is about four miles from the proposed mine site.

How deep is the local opposition to the mine? A reporter for the Buenos Aires Herald says 3,000 people protested in front of the mining office and the office of a local newspaper that supports the project.

Meridian, meanwhile, describes opponents of the mine as "a small group of people" and complains that the opponents have used false and misleading information.

The Reno company said, too, that opponents "not subtly" influenced the city council of Esquel in its consideration of the mine.

Opponents of the mine are seeking to build international support for their case.

Friends of the Earth, for instance, called on its members worldwide to express solidarity with the Argentine protesters.

The Argentine government, meanwhile, has invited UNESCO the United Nations Educational, Scientific and Cultural Organization and the office of the local Catholic bishop to sponsor talks between Meridian and mine opponents.

For its part, Meridian says the mine would meet or exceed standards set by the Argentine government and the World Bank.

It's completed a government-required environmental study, and Argentine officials expect to complete their review of the study by the middle of this year.

Meridian also has hired an Argentine toxicologist to explain to local officials how cyanide can be handled safely "The company's open-pit mine and gold extraction facility will be technologically sophisticated and environmentally sensitive to meet all the standards required by Argentine regulations in the Mining Code," Meridian told shareholders as it reported its 2002 results last week.

The company said the public hearing set for later this month might be delayed for completion of water-quality studies.