Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a considerable reduction in the local petrol price is anticipated, says governor Gill Marcus.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - AngloGold Ashanti, the world's third-largest gold producer, said a call by Colombia's attorney-general that permission be denied for a mine in that country has come very early in the exploration process, and that it would deal with the concerns raised.
"It's only one portion of what we're working on and it's very early in the process to say whether the timetable for development will be delayed or derailed," said AngloGold spokesperson Joanne Jones.
"We'll continue discussions with the environmental ministry and the various responsible agencies," she said.
Colombia's attorney-general Edgardo Maya is reported by newswire Reuters to oppose a development of a mine because it would be located in an environmentally sensitive area, in this case a forest reserve.
He's reportedly sent a letter to the environmental ministry outlining his opposition to a mine, which could be in production around 2014, and minister Juan Lozano said he would consider the recommendation.
"We are aware of his concerns and the area under discussion is only one of a number of exploration sites in the region. It is one of the active sites," Jones said. "The issues raised don't relate to the whole area we are working in."
AngloGold reckons it has one of the world's largest gold deposits at La Colosa in Colombia, which has an inferred resource of 13 million ounces defined at $1 000/oz. The gold price is now about $800 and very volatile.
It is also working on the Gramalote prospect in that country.
AngloGold is looking to dispose of non-core assets in South Africa, including its Tau Lekoa mine and tailings dumps in South Africa, as well as other assets in West Africa, including those in partnership with Iamgold in Mali.
It said in November that it was prioritising spending on gold projects in Australia and Colombia. Anglogold CEO Mark Cutifani has consistently said how excited AngloGold was about Colombia, and that the La Colosa project could yield 20 million oz of gold.
Shareholders tend not to place much value on early-stage exploration projects. AngloGold's shares shot up 11% on the JSE to R271. The JSE gold sector ended up nearly 8%.
- Fin24.com