Colombia’s comptroller warns AngloGold

[miningmx.com] — THE use of water resources for a major AngloGold Ashanti project in Colombia could threaten agriculture and human populations, the country’s comptroller said in a letter made public on Wednesday.

A river basin may be jeopardised by the massive La Colosa project, potentially reducing water supply for agriculture and consumption, said Colombia’s comptroller, Sandra Morelli, in a letter to the environment minister.

AngloAshanti, the world’s No. 3 gold producer, lacks the necessary permits to continue its exploratory studies in the area, which may have more than 12 million ounces of resources.

Until an evaluation of the environmental impact of La Colosa proves water levels will remain above a predetermined minimum, any decision regarding project licenses could be considered illegal, Morelli said.

A local environmental agency, Cortolima, forbade any mining use of the land in the river’s basin after a hydrologic study in 2006, said the comptroller in her letter.

AngloGold’s chief executive in Colombia, Rafael Herz, said the exploratory phase does not endanger water supply to cities or for agriculture since the water required is minimal.

“The water we use now is the equivalent to … 4 liters per second,” Herz told reporters. “We do not affect anyone with that amount.”

Herz said the absence of environmental and other permits from regional and national authorities have made it impossible to meet the original exploration deadline, set at 2012. The firm is now expected to conclude exploratory studies in 2015.

Mine construction of La Colosa was expected between 2014 and 2016, with production scheduled to start in 2016 or 2017.

The project requires $3bn in investment, Herz said.

Foreign direct investment in oil and mining operations in Colombia has increased along with security in rural areas, even as environmentalists push for stricter control.

Canada’s Greystar in March withdrew permit requests for a project over environmental concerns.