Water restriction in Tolima must be reviewed, deputy minister says.

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Fuente: BNAmericas.

Colombia's government believes it is necessary to review the Tolima regional autonomous corporation's (CAR) decision to restrict water use in the department, which is affecting the development of South African miner AngloGold Ashanti's (NYSE: AU) La Colosa gold project, deputy environment minister Carlos Castaño told BNamericas.


At the end of April, the CAR announced that it will not grant any more water concessions due to the low level of the Coello river, the main water supplier in the region.


"The CAR's decision is far reaching and complicated, since it means not granting any permits from here on out, not for any kind of economic activity... it's an issue that goes far beyond La Colosa," Castaño said, adding that he has already reviewed the studies and regulations that led the CAR to make the decision, and he believes that there are criteria that need to be evaluated and redefined.


"We have decided to establish a permanent committee that includes several experts from the national environmental system, accompanied by [national hydrology, meteorology and environmental studies institute] IDEAM, other research institutes, the Tolima CAR and the [environment, housing and territorial development] ministry to look at the matter in more detail," he said.


The committee's objective is to establish the variables that justify restricting water access and, based on this, reconsider the decision.


For now, AngloGold is continuing the prefeasibility study to develop the project. The company expects La Colosa to be producing at least 700,000oz/y of gold within 5-6 years and is transporting water in trucks from Tolima capital Ibagué.


The use of water at La Colosa is not for mining processes but for the day-to-day needs of the people who work in the area, according to AngloGold's local president Rafael Herz. The project currently uses 4l/s and it is estimated that future water use could reach 8l/s, "which is still very little," Herz said.


The company expects to invest US$310mn over the next three years in La Colosa and its projects in the departments of Antioquia, Caldas, Cauca, Nariño and Bolívar.

In Latin America, AngloGold operates mines in Argentina and Brazil.