Govt's hands tied over Las Crucitas gold project

Costa Rica's President Abel Pacheco has admitted his government is powerless to prevent the new Las Crucitas open-pit gold mine from going ahead at San Carlos, even though it is totally opposed to such mining, La Prensa Libre reported. Although Industrias Infinito, the local subsidiary of Canadian minerals company Vannessa Ventures (TSX: VVV), was granted a 10-year concession by the previous Costa Rican government to develop and operate Las Crucitas, doubt was thrown on the project's future after the current government issued a decree prohibiting open-pit mining. However, this was followed by a supreme court ruling that any mining concessions already granted must be respected. Speaking at a recent public engagement, President Pachecho again voiced his opposition to the La Crucitas project but said the government's "hands are tied" on the issue. It is estimated that the Costa Rican government would have to pay at least US$35mn in compensation if it were to revoke the Las Crucitas concession. In recent weeks, ecologists in both Costa Rica and Nicaragua have warned that Costa Rica will be in breach of several international environmental agreements if the mine goes ahead. They fear the project will contaminate the San Juan river and lead to the destruction of local habitats. Industrias Infinito calculates gold extraction of at least 1Moz at Crucitas over a 12-year period, with an average annual production of 100,000oz during the first four years and a production cost of at least US$160/oz.