Mina Crucitas Compensation: $1.7 Billion

The Costa Rican government predicts possible damages payable to Industrias Infinito if the gold mining contract is cancelled.

Tuesday, July 27, 2010

Costa Rica’s courts have indicated to the president that she has the legal authority to cancel the Mina Crucitas mining contract, provided the government assumes responsibility for the case by providing compensation.

Nacion.com reports that, “the size of the compensation surprised Industrias Infinito’s head of corporate relations, Juan Carlos Obando, who thought the figure seemed high. However, later the company’s analysts calculated that a similar amount of $1.8 billion was possible, although Obando commented that the company does not expect this outcome”.

More on this topic

Costa Rican Court Cancels Las Crucitas Mining Concession

November 2010

A local court ruled to annul the concession previously granted to Industrias Infinito, and ordered the company to pay compensatory damages.

The court ordered the Costa Rican State and Industrias Infinito to pay environmental damages.

An article in Elfinancierocr.com noted that the ruling is not definitive, as another court (Sala Primera), must first resolve an appeal by Industrias Infinito.

Canada Asks Costa Rica to Respect the Crucitas Contract

August 2010

The Canadian ambassador to Costa Rica has warned of the damage to the country's international reputation if the project is cancelled.

Neil Reeder, Canadian ambassador, indicated that his government can vouch for the environmental responsibility of Canadian mining companies. Despite the project being financed by the private sector, the Canadian government maintains a close interest in the project, he added.

President Chinchilla Will Not Revoke Mina Crucitas Permits

July 2010

Taking into account the ruling of the Constitutional Court in favor of the gold mining project and the risk of a multi-million pound law suit, Chinchilla will not cancel the concession.

The Mina Crucitas operations, which are in the preparatory phase, remain suspended as a precaution pending the reversal of the Contentious-Administrative Tribunal ruling, which stopped the mine from operating in response to a complaint from an environmental organization.

Crucitas Mine in Costa Rica: Key Figures

September 2009

Infinito Gold, owner of the strip mining project "Crucitas" in Costa Rica, presented investors details of the controversial $66 million mine.

The company reviewed the mine's total gold output at 940.000 ounces, raising the Net Present Value of the project to $127 million.

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