The mining boom in Colombia threatens the Latin American country’s biodiversity and natural wealth, raising question as to how new projects can proceed in a way that is sustainable, according to a report by Colombian magazine Semana.
In a report titled ‘the great dilemma, Semana says new mining projects that are being developed by the likes of Greystar Resources Ltd. (TSX: T.GSL, Stock Forum) and others have the potential to double Colombia’s gold output in the next two years.
In its report, Semana notes that since 2004, the government has handed out over 1,536 exploration permits for gold and there are another 7,770 pending.
Until now, experts say Colombia has been able to preserve its biodiversity thanks in part to the armed conflict, which has prevented prospectors from working in some mineral rich areas, and the laws that protect nature reserves and reservations.
But now that the Colombian government has been able to gain the upper hand on armed guerillas, questions are being raised about how a rising amount of mining activity will affect the environment, according to the Semana report.
Quoting former Colombian Environment Minister Manuel Rodriguez, it concludes that the government should not say no to mining, but should revise its mining code to fill in gaps and establish clear rules to protect the country’s biodiversity.
The focus on the environment comes as Greystar works to complete a feasibility study for its Angostura project, a potentially large open pit mine, which is located in the highlands of northeastern Colombia.
With a price tag of just under $1 billion, the mine is expected to generate 500,000 ounces of gold annually and two million ounces of silver.
In an interview, Greystar chief executive officer Steve Kesler said he believes that Colombia is about to emerge as the next major Latin American venue for mining activity. He was referring to the fact that the past 20 years have seen a lot of activity in Chile and Peru and Colombia will be next.
However, the company’s stock price went into a tailspin on April 26 after Greystar announced that its Environmental Impact Assessment (EIA) would have to be refiled in order to conform to a new mining law that prohibits mining in a highland ecozones known as the paramos.
Greystar appealed, and on May 31, the company said the Ministry of Environment had agreed to reverse that decision.
Now that its EIA process appears to be back on track, Kesler said the company hopes to demonstrate that Angostura can be built in such a way that it minimizes the impact on local water and ecosystems in the paramos.
Other companies who are active in Colombia include Ventana Gold Corp. (TSX: T.VEN, Stock Forum), Medoro Resources Ltd. (TSX: V.MRS, Stock Forum) and B2Gold Corp. (TSX: T.BTO, Stock Forum).