AngloGold expects decision on Colombia mine soon

BOGOTA Feb 24 (Reuters) - South Africa's AngloGold Ashanti (ANGJ.J) said on Tuesday it expects a decision from Colombian authorities on whether it can resume drilling at its stalled La Colosa project within the next 30 working days.

Environmental officials in the Andean country halted exploration work at the site in the central Tolima province a year ago, saying the drilling threatened forest reserves.

"There isn't a formal date, but we hope there will be a decision within 30 working days," an AngloGold spokeswoman in Bogota said.

AngloGold Ashanti, the world's No. 3 gold producer, says La Colosa has estimated reserves of more than 12 million ounces. Production could start within five years, if the government gives the project the go-ahead.

Mining industry leaders in Colombia say the uncertainty over La Colosa has deepened the gloom that descended on the sector in recent months due to the global financial crisis, which has hit metals prices and dried up credit.

Gerardo Canas, president of the industry group OLAMI Colombia, said 15 miners had suspended exploration work since September and criticized the government for sending mixed messages over mining at a time of wider uncertainty.

"We can't run the risk that mining investment comes to an end, especially at a time when this sector is bolstering economic growth," Canas said in a statement.

"Mining in Colombia depends on what happens with La Colosa," he added. (Reporting by Helen Popper; Editing by Christian Wiessner)