Argentina Government: Goldcorp To Invest $850 Million In Cerro Negro Project

Argentina's Planning Ministry said Thursday that Canadian mining company Goldcorp Inc. (GG) will invest $850 million to put into production its Cerro Negro gold project in Santa Cruz Province.

"This announcement consolidates Argentina as a destination for long term investment as the Cerro Negro project has a useful life of 20 years," Planning Minister Julio De Vido said in a statement.

De Vido met with GoldCorp's vice president for Central and South America, Eduardo Villacorta, in Mexico City on Thursday, according to the statement.

A GoldCorp spokesman wasn't available for comment.

Vancouver-based GoldCorp said on April 5 it expects to start producing gold at Cerro Negro in mid-2013 and the mine will produce an average of 550,000 ounces a year during the first five years of production. The company said it expects to make capital expenditures of $750 million to reach first production in 2013.

Goldcorp operates mines in Canada, Mexico, Guatemala, the U.S. and Argentina, with a pipeline of projects four countries in the Americas.


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