Greystar Resources is unlikely to get its permit for the operation of a gold mine in the north eastern area of Colombia. The Mines and Energy Minister Carlos Rodado said that the $1 billion gold and silver mine would be rejected as it lacked viability due to environmental concerns. The project is located in a watershed area of the Colombian state and may have been difficult to manage.
The exploration of the project had begun 15 years ago and the area is said to hold about 7 million ounces of extractable gold. Victor Guimaraes, the mining superintendent of the company said that they had spent over $150 million on the project so far. Unfortunately it all seems to be have been for nothing.
With the likelihood of the permission being approved being so dim the Chief Executive officer of Greystar Resources, Steve Kesler had called up the Mining and Energy Minister Carlos Rodado and withdrawn its application for the environmental permit to operate a mine in the area.
The decision will be a big blow to Greystar’s efforts to get its first gold producing mine started. Now the honor of that will go to Angostura mining project in the Santander province near the towns of Vetas and California. The project is expected to produce 2 million ounces of silver and 500,000 ounces of gold on a yearly basis.