Colombia deals a blow to AngloGold’s $1.4B copper project

Colombia’s National Mining Agency (ANM) has rejected AngloGold Ashanti’s (JSE: ANG)(NYSE: AU)(ASX: AGG) request to suspend its contractual obligations for the stalled $1.4-billion Quebradona copper-gold project, deepening the project’s regulatory troubles.The agency confirmed this week it received two requests from AngloGold this year: one to extend the exploration phase and another to suspend obligations under the mining title. Both were denied.The ANM cited a legal contradiction in granting both requests simultaneously, stating that suspending obligations while extending exploration was incompatible. It also ruled that the company failed to provide sufficient evidence to support the force majeure conditions cited in its application.Located in the Cauca Medio region of Antioquia, about 60 km southwest of Medellín, the Quebradona project has been on hold since 2021. That year, Colombia’s environmental regulator (ANLA) shelved its environmental licence due to technical gaps and environmental risks, including potential harm to the Jericó ecosystem. ANLA upheld the decision in 2022.To revive the project, AngloGold must submit a new environmental impact assessment (EIA). The company said it is collecting hydrogeological, hydrological, and geotechnical data requested by ANLA and aims to file the updated study by 2027.AngloGold’s long-term plan for Quebradona targets production of 1.4 million tonnes of copper, 1.4 million ounces of gold, and 21.6 million ounces of silver over two decades. But opposition from local communities and environmental groups cast a doubt on the project’s future.TensionsOver the past five years, tensions between the company and locals have escalated. In late 2023, AngloGold filed a lawsuit against farmers and environmental activists, accusing them of kidnapping, theft, and personal injury during protests. One incident involved demonstrators halting an unauthorized excavation and alerting local authorities, The Guardian reported earlier this year. In another case, more than 150 farmers entered land where the company was drilling, removed machinery, and turned it over to officials. A miner reportedly sustained a dog bite during the confrontation.Colombia currently hosts only one large-scale copper mine, El Roble, operated by Canada’s Atico Mining (TSX-V: ATY) in Chocó. While at least eight copper projects are in development, regulatory shifts have clouded their future. New environmental rules, agricultural protection zones, and potential resource reserve declarations have added layers of uncertainty.Globally, about 6.4 million tonnes of copper production, equivalent to more than 25% of current mine output, is stalled due to environmental, social, and governance (ESG) constraints, according to recent studies.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com