YAMANA GOLD - ANNUAL INFORMATION FORM FOR THE FISCAL YEARENDED DECEMBER 31, 2010
Economic and Political Instability in Argentina
The Company’s Alumbrera and Gualcamayo mines and Agua Rica and Suyai projects are located inArgentina. There are risks relating to an uncertain or unpredictable political and economic environmentin Argentina.There is the risk of political violence and social tension in Argentina as a result of past economicperformance and Argentina has experienced civil unrest, crime and labour unrest at times. For example, roadblocks (piqueterou) by members of the local communities, political activists, theunemployed and labour unions sometimes occur on national and provincial routes without notice,which could potentially cause disruptions to access routes near the mine site and affect the supply of goods to the mine from time to time.Certain political and economic events, such as acts or failures to act by a government authority inArgentina and acts of political violence in Argentina could have a material adverse effect on theCompany’s ability to operate its mines and projects in Argentina.
Suyai Project
The Suyai project is an advanced stage exploration gold project comprising 141,000 ha of land locatedinthe Sierra de Suyai in southern Argentina. The various properties comprising the Suyai project areclassified as either “permits”, “claims” or “mines” and are either owned outright by Minera MeridianAustral S.A. (“MED”) or through option contracts between MED and the direct owners.On July 3, 2002, Meridian completed an unconditional share purchase offer for Brancote, owner of theSuyai project. Permitting for the project and a feasibility study began in the third quarter of 2002. InMarch of 2003, with the feasibility study substantially complete, the project was put on hold after localopposition to the mine led to a non-binding referendum wherein a majority of Suyai’s citizens votedagainst the mine.The Company continues to monitor the developments in the province of Chubut as it relates to miningand will evaluate the project on an on-going basis.
La inestabilidad económica y política en Argentina
Las minas de la compañía Alumbrera y Gualcamayo y los proyectos Agua Rica y Suyai se encuentranen Argentina. Existen riesgos relacionados con un ambiente político y económico incierto eimpredecible en la Argentina.Existe el riesgo de violencia política y tensión social en la Argentina como resultado del pasadorendimiento económico y la Argentina ha experimentado disturbios civiles, delincuencia y conflictividadlaboral en ocasiones. Por ejemplo, bloqueos de carreteras (piqueterou) por los miembros de lascomunidades locales, activistas políticos, los desempleados y los sindicatos a veces se producen enlas rutas nacionales y provinciales sin previo aviso, lo que potencialmente podría causar trastornos alas vías de acceso cerca de la mina y afectar el suministro de bienes a la mina de vez en cuando.Ciertos acontecimientos políticos y económicos, como los actos u omisiones de una autoridadgubernamental en la Argentina y los actos de violencia política en la Argentina podrían tener un efectomaterial adverso en la capacidad de la compañía para operar sus minas y proyectos en Argentina.
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