Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian junior miner Galway Gold (TSX-V:GLW) said Wednesday it will study the legal effects of a recent ruling banning all mining activities in Colombia’s paramos, which forces the company to shut down its Reina de Oro operation.
Earlier this month, the country’s Constitutional Court ruled against a controversial legal loophole permitting oil, gas and mining operations in the country’s paramos— high altitude eco-systems that supply more than 70% of Colombia’s population with water.
Galway said the ruling not only forces the company to halt operations, but it blocks it from transferring the project, as the mining permit will no longer be valid.
Galway said the ruling not only forces the company to halt operations, but it blocks it from transferring the project, as the mining permit will no longer be valid.
According to industry sources, there are 36 paramos in Colombia and at least 350 titles in such areas, Galway said in a statement.
“The court appears to be suggesting that mining affects the quantity and quality of water the area produces,” the firm noted.
The ruling has also declared that public interests supersede private interests, which eliminates the ability of the company to sue the Colombian government for damages.
In the past year, Colombia has worked on improving the country’s mining standards. Authorities have adopted a “zero tolerance” stance when it comes to illegal mining and taken steps to expedite permit approvals. They have also tightened regulations to establish a project’s area of influence in order to improve mitigation of environmental and social risks.
Other than gold and coal, Colombia holds vast and untapped reserves of emeralds, silver and oil.
Full press release here.
2 Comments
Altaf
Just for argument sake………dont curse me……..it is just for fun……
All these issues of environmental degradation is micro level issues. Lets look at Macro level.
I feel God is not an environmentalist. If he was, then when he created this universe, why did he store gold under paramos? why did he store store diamonds in Congo? why did he store all the iron ore required by China in Australia? why did he store all the wood required to build homes in rain forests? why did he store all the oil US and Europe need in Middle east? why did he create Swiss banks in Europe while all the black money is coming from third world countries? He certainly knew that man will dig earth inside out. He knows this is coming.
If God was environmentalist, he would have stored oil under Industrialized urban centers.He would have stored all the black money under Swiss banks, all the gasoline under New York
This is only CHAPTER 1.
If you think of CHAPTER 2, you will go crazy.
God not only made whole planets with diamonds in far away galaxies but sending signals and directions to man in the form of meteorite showers and encouraging him to develop technology to go to other planets and asteroids to pillage the whole universe.
If you think of the bigger picture globally, universally, this issue of gold under paramos looks trivial.
God should have kept man confined to Stone age and if in case if by chance man escaped from Stone age and slipped into modern world, kept all his requirements in neat packets in front of his door steps.
Glen van Kerkvoort
Just for argument sake… what if God is everything, nothing more, nothing less.