Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
World number three gold mining company AngloGold Ashanti (NYSE:AU) is halting plans to develop its $2 billion La Colosa project in Colombia after voters in a referendum held in the central Tolima region overwhelmingly opted for a ban.
AngloGold has been advancing the project for 14 years and La Colosa had the potential to become on of the largest gold mines in the world.
The deposit, 150km west of Bogota, boasts proven and probable reserves of 25.4 million ounces ranking it in the top ten gold deposits in the world.
The Johannesburg-based company said it had to stop all exploration work and investment at the 100%-owned project until “there’s certainty about mining activity in the country and Tolima”.
According to Reuters AngloGold has invested roughly $900 million in Colombia over the past decade and La Colosa was the largest of its three projects in the country:
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.
7 Comments
Milton Agustin Gonzaga
it is so unfair…..
kumon cens
Sadly democracy works when the there is a strong educated middle class. Unfortunately given some track record of some mines and oftentimes ill-trained and unfunded government regulators, this gives knee jerk reactions to the populace which serves them no economic purpose. In the long run the deposit will be there and perhaps the population will be ready by then. In the short to middle term the mining companies will be leery of investing millions of dollars due to a higher political risk
RDC1378
Fruta del Norte all over again?
the other Bob
It’s part of a long-term power shift worldwide from higher levels of government to lower levels. National governments have typically failed to return benefits even faintly proportional to the wealth extracted from sub-national regions. At the same time, mining companies don’t want to take on government responsibilities. Increasingly, a social license requires a new social contract. It can be worked out, but its more about stakeholder relations than engineering or finance.
Vern Shein
The combination of partially being located in the paramo ecosystem as well as facing opposition from the very powerful rice growing lobby of Tolima meant that it has been an uphill battle for AGA.
JoeNormal
More about ‘local’ palms wanting to get ‘greased’…”la mordida”…than anything else. Before it was the federal officials getting their “envelopes”…..now…..
Winkiewon
We have some very intelligent comments here, the jest of the problem and any one that has worked in mining projects in Latin America knows, corruption is the sole problem, Latin country regimes, pocket the wealth from mining and the masses of the population benefit not. Steeling is Socially excepted right down to children, community leaders are no different, they will do what ever they can to line their pockets. It’s a way of life…and protecting Mother Earth is just a ruse, environmental destruction is a product of most every community in Latin
America……..