Colombia to decide on Colosa by end-July

Production and Markets

Publishing Date: 06 Jul 2009 5:25pm GMT
Author: Mining Journal

Colombia expects to decide next month whether to let AngloGold Ashanti Ltd, the third-largest producer of the metal, resume exploration at the Colosa gold deposit.

The government is reviewing the company’s petition to explore a larger area at La Colosa, which was restricted to protect forestland in the surrounding area, Claudia Mora, the nation’s vice-minister of the environment, said in Bogota.

"The most important thing, the clearest thing, is to ensure that natural resources are protected," she said.

Exploration at the site 150km west of Bogota was suspended last year, Mora said. The deposit has 12.3Moz of gold and is a
"significant" find, AngloGold chief executive officer Mark Cutifani said in February.

Colombia, seeking to increase its output of gold after prices doubled in the past four years, said this year that AngloGold could resume exploration on about 6.4ha. AngloGold later appealed the decision and exploration there is still halted, Ms Mora said.

Exploration will remain halted while the government also reviews opponents’ claims that the project may increase water pollution and reduce supplies, Ms Mora said.

June 30, Bloomberg