AngloGold suspends Colombia project after anti-mining vote

Eco Oro Minerals

27/04/2017 23:18

BOGOTA, April 27 (Reuters) - South Africa's AngloGold 
Ashanti  ANGJ.J  has halted all exploration work at its La 
Colosa project in central Tolima, Colombia, after voters backed 
a proposal to ban mining in the municipality, the company said 
on Thursday. 
    The decision comes amid legal wrangling over environmental 
regulations and community opposition that have worried investors 
and prompted the mining minister to promise a new law to 
reconcile central government-granted mining permits with local 
and judicial concerns.  urn:newsml:reuters.com:*:nL1N1HW0KD 
    The company, which has been carrying out exploration work at 
the site outside of the town of Cajamarca for 14 years, said in 
a statement it "accepted" the result of last month's vote. 
    "Diverse reasons which range from the institutional, the 
political and particularly the social, with the recent 
referendum, oblige us to take the unfortunate decision to stop 
all project activities and with it all employment and 
investment, until there's certainty about mining activity in the 
country and in Tolima," AngloGold said. 
    The Tolima vote was made possible by a Constitutional Court 
decision that overturned the national government's sole 
authority to approve mining projects, allowing mayors and 
provincial governors to challenge exploration permits, to the 
delight of environmental groups and some politicians. 
    The La Colosa project had a potential investment of $2 
billion, the company has said, and could yield 28 million ounces 
of gold. A huge majority of Cajamarca residents - 98.8 percent - 
voted against allowing mining in the referendum. AngloGold has 
invested some $900 million in Colombia since 2006 and La Colosa 
was the largest of its three projects in the country. 
 urn:newsml:reuters.com:*:nL2N1H40VI 
    The company said it would continue to seek constructive 
dialogue about mining in the country. 
    Colombia is the world's fifth-largest producer of coal and 
has rich deposits of gold, ferronickel, silver, copper and 
emeralds. 
    Community votes are not the only concern for investors - 
Canadian company Eco Oro Minerals Corp  EOM.TO  is waging a 
legal battle against a court ruling that bars exploration in 
half its concession in an effort to preserve high-altitude 
wetlands. 
 
 (Reporting by Julia Cobb; Editing by Chris Reese) 
 ((julia.cobb@thomsonreuters.com; +57-316-389-7187)) 
 
Keywords: COLOMBIA MINING/