Gold price firms in holiday-thinned trade, spotlight on Fed and Trump policies
The yellow metal has gained 27% so far this year.
Argentina may be salivating over an abundance of natural resource riches, but getting it out from under the ground could push local water supplies to the breaking point.
AP reports that the amount of water needed to bring a large shale oil and gas deposit into production would take an estimated 38 billion gallons of water — the daily water requirement for the United States. Another oil and gas deposit known as “Vaca Muerta” (Dead Cow) could increase Argentina’s oil reserves by at least 750 million barrels but would have to be extracted by fracking, which uses large amounts of water, along with chemicals and sand, to break apart the rock to get at the trapped methane gas.
“.. it would take many thousands of wells to extract what they’re hoping to produce,” AP quotes Cornell University engineering professor Anthony R. Ingraffea, an expert on the complex mechanics of fracturing rock deep underground.
Number one gold producer Barrick Gold is hoping to mine gold from Pascua Lama, the world’s highest-altitude gold mine, but is getting pushback from local populations downstream from an available river who face water restrictions and pay 99 times for for their water than what Barrick pays, AP reported.
A Glacier Law passed last year bans mining activity on glaciers, which supply most of the water in the arid western part of the country.
2 Comments
Ed233
I’m an investor in mining and although I don’t presently own Barrick I still see that it is imperative that Barrick give guarantees that they will no affect the water sources. That means putting up sufficient security to cover any potential loss until this mine has diminished its resource. And that Barrick should reimburse the locals to level the playing field between what Barrick pays compared to the amount the locals pay.
Bcaciagli
The article is extremely misleading at least as far as the mining is concerned: 1-The “glacier law ‘ has been rejected by most mountain provinces and is presently in the ARG supreme court, it has major flaws both legally and technically. 2-Mining uses less than 5% of the water resources. 85%+ is being used and wasted by the agricultural sector and its obsolete water conveying and irrigation systems. Please get your facts straight!