Chile halts construction of huge gold mine

A Chilean court suspended construction of what would be one of the world's biggest gold mines on Wednesday, accepting a complaint filed by indigenous groups on environmental grounds.

The project was launched in 2009 by Canadian mining company Barrick Gold, the world's largest gold producer, after an initial investment of $8 billion.

It plans to spend $8.5 billion more on the unfinished Pascua Lama mine, which straddles the Chile-Argentina border at an altitude of 4,000 meters (13,200 feet), and had hoped to start production next year.

But local groups have launched a legal battle to halt the plan, citing concerns over possible damage to a river and resulting in Tuesday's ruling by the Santiago Appeals Court, which was seen by AFP.

This came as crews were still removing earth to create the pit from which gold and silver would be extracted, and the order suspends construction of the open-pit mine while the court studies the broader environmental issues.

The complaint was filed by the Diaguita indians, a small community based in northern Chile. It said that the construction work "has generated a situation of imminent environmental danger" for the Estrecho River.

Interior Minister Andres Chadwick said he was not surprised by the court decision, and welcomed the idea of suspending the project while Barrick ensures it is complying with all environmental protection terms set by the government.

Lorenzo Soto, a lawyer for the Indians, said damage being caused by the construction of the mine was of "great magnitude."