Factbox: Gold miners' rocky road in Colombia

Eco Oro Minerals

20/06/2019 14:00

BOGOTA, June 20 (Reuters) - Canada's Continental Gold
 CNL.TO  is on track to open a mine in Colombia in 2020 that
will be the country's first large-scale underground gold project
in years.  urn:newsml:reuters.com:*:nL2N23K0L9
    Other multinational mining companies looking to kick off
similar projects in Colombia have struggled amid legal,
financial and licensing troubles and environmental and community
objections.
    The following is a breakdown of challenges faced by gold
miners in the Andean nation.
    
    ANGLOGOLD ASHANTI
    AngloGold Ashanti Ltd  ANGJ.J  was forced to abandon its $2
billion La Colosa mine after a 2017 community vote banned
mineral extraction. 
    The vote came amid a wave of environmentally focused
anti-mining referendums that spooked investors. The
constitutional court later ruled referendums cannot halt energy
projects because the country's subsoil is national property.
 urn:newsml:reuters.com:*:nL2N1WS0KI
    Earlier this year the company was forced by a local mayor in
Antioquia province to halt a soil study at its Quebradona copper
exploration, before a provincial environmental authority ruled
work could continue.  urn:newsml:reuters.com:*:nL1N20F0E4
    The company's Gramalote gold project, which is in planning
stages, could produce between 350,000 and 450,000 ounces per
year, AngloGold says. 
    
    ECO ORO   
    Canada's Eco Oro Minerals Corp  EOM.CD  sued the Colombian
government after its Angostura project in Santander province was
cut in half by a 2014 constitutional court ruling that expanded
wetland protections. 
    The company is suing for $764 million in damages in ongoing
arbitration. It has said it has already invested some $250
million in Colombia, including in Angostura. 
    
   RED EAGLE 
   Vancouver-based Red Eagle Mining Corp  R6E.MU  had predicted
its San Ramon mine, in mineral-rich Antioquia province, would
produce up to 50,000 ounces of gold in 2018, but the company was
forced to shutter the project amid a restructuring negotiation. 
    In November $38 million of equity financing meant to enable
an operations restart fell through and the company was served
with a default notice.
    
    MINESA
    Minesa, owned by the government of Abu Dhabi through its
investment arm Mubadala Investment Corp  MUDEV.UL , is waiting
for environmental licenses for the $1 billion Soto Norte project
in Santander province.  urn:newsml:reuters.com:*:nL1N1R51RX
    The miner plans to eventually produce some 410,000 ounces of
gold per year, but has struggled to develop positive
relationships with the community around the proposed project.
    The company's chief executive caused a minor scandal this
year after Colombian media released video of him saying local
opposition to the mine is unimportant if Bogota authorities
grant the license.  

 (Reporting by Julia Symmes Cobb
Editing by Marguerita Choy)
 ((julia.cobb@thomsonreuters.com; +571-518-5381;))