AngloGold Ashanti said on Tuesday that ANLA, Colombia's environmental regulator, had shelved its application for a license for its Quebradona copper and gold project.
ANLA said in a separate statement that the decision was made after "a technical, rigorous and comprehensive assessment of environmental impact studies, content collected during site visits, other information provided by the company and the views of other entities."
AngloGold Ashanti stated that it had not received formal notification of the decision and that it could appeal. It points out that the decision to "file" an application is made when regulators determine that additional information is needed to confirm or reject the application.
ANLA's decision effectively halted the development of the project, but did not reject the license request.
"applicants can decide whether to appeal against the decision or resubmit the application," AngloGold said.
In 2008, the government regarded the proposed mine as a project of national strategic interest, but locals in (Antioquia), the state where the project is located, intermittently opposed the mine. They recently sought but failed to protect 60% of the soil around the mine, declaring that the area was for agricultural use only.
"Quebradona remains one of the most exciting new copper and gold projects in the world, and we are encouraged by its strength and continued growth at the national level to support its development," AngloGold said.
ANLA said that the main technical considerations leading to the shelving were the definition of the area affected by the project, hydrology, geotechnical and hydrogeological issues, and considerations related to slag disposal, but did not provide details.
The copper mine, which produces gold and silver as by-products, is expected to process about 6.2 million tonnes of ore a year over its 21-year production life, with an average copper grade of 1.2 per cent.
It is estimated that it will take about four and a half years from the beginning of construction to achieve the first batch of production.
The company expects to produce 3 billion pounds (1.36 million tons) of copper, 1.5 million ounces of gold and 2100 million ounces of silver annually throughout the mine's life cycle.
The temporary failure to get a Quebradona start will be a big blow to the company's new chief executive, Alberto Calder ó n, who took over in September.
The Colombian native has vowed to take risks in his home country, where AngloGold is pushing ahead with another project, Gramalote Gold assets. The company's gold assets, developed in partnership with B2Gold, are at the centre of a long-delayed mining rights dispute with Canada's Zonte Metals, which remains active.
South Africa's mining industry has shrunk as a result of power outages, soaring costs and geological challenges in mining the world's deepest deposits, and AngloGold has shifted its focus from home to higher-margin mines in Ghana, Australia and Latin America.
