Goldcorp says Argentina revenue rule won’t have immediate impact

Goldcorp says Argentina revenue rule won’t have immediate impact

Goldcorp says Argentina revenue rule won't have immediate impact.

Goldcorp says Argentina revenue rule won’t have immediate impact.

Photograph by: YOSHIKAZU TSUNO, AFP/Getty Images

Goldcorp Inc., the world’s second- largest gold producer by market value, said it won’t immediately be affected by Argentina’s order that mining and oil companies repatriate all their export revenue.

Earnings from Goldcorp’s 37.5 per cent stake in the Alumbrera gold and copper mine in Argentina are being used to develop its Cerro Negro project, also located in the country, Chief Executive Officer Chuck Jeannes said yesterday in a telephone interview from Vancouver.

“We should be able to manage that in a manner that doesn’t run afoul of any of these provisions,” Jeannes said. “It’s not going to have much of an impact on us, at least in the short term.”

Argentine President Cristina Fernandez de Kirchner yesterday changed a 2004 decree that allowed Goldcorp and other miners to keep all of their revenue outside the country. The move is part of an effort to slow capital flight estimated at $3 billion a month that’s draining central bank reserves.

Shares of some gold producers with Argentine assets fell yesterday following the announcement. Canada’s Extorre Gold Mines Ltd. dropped 21 percent and Toronto-based Yamana Gold Inc. declined 4.7 percent.

“We’ll be talking to our friends in the government to try to understand better what’s going on,” Jeannes said.

Barrick Gold Corp., the world’s largest gold producer, said Thursday it’s had talks with the government. Barrick CEO Aaron Regent said on a conference call that the Toronto-based company is examining the changes. Barrick operates the Veladero mine in Argentina and is building the Pascua-Lama project on the country’s border with Chile.

© Copyright (c) The Vancouver Sun

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