The Colombian mining sector is experiencing better fortunes and interest thanks to increased government support and rising raw material prices; There remain a number of attractive and available projects suitable for junior mining companies and growing opportunities for mining equipment, technology and services (METS) companies.

In general terms, the Colombian mining sector consists of three groups of basic products (coal, gold and emeralds); A brief summary of each is provided below.

Coal. The coal sector in Colombia is characterized by large thermal deposits in the north of the country, where there are operators such as Cerrejón, Drummond and Prodeco and smaller metallurgical deposits, with fine seams, located both in the center of the country and throughout the border with Venezuela. In practice, the vast majority of mined thermal coal is transported to ship loading facilities by train, while mined metallurgical coal is often transported by truck and / or a truck / barge combination. Due to the scale, low operating costs and good logistics systems, the production cost per ton of thermal coal is low, while due to the smaller scale and logistical difficulties, the cost of producing metallurgical coal in Colombia is higher. of industry standards. However, recent increases in the price of coal mean that these metallurgical deposits can be mined well below cost to sell, making it an attractive investment / purchase opportunity for the Junior Mining Sector. Consequently, it presents an opportunity for the METS sector if they can bring in systems, equipment and / or procedures that improve efficiency, increase recovery and reduce the cost of production.

Emerald. The emerald sector is rarely understood or known in Colombia, even though it has recently grown to become the largest producer of emeralds in the world. Historically, the sector (located just a few hundred kilometers north of Bogotá in the Boyacá province) has had a turbulent past, marked by crime, unsafe work practices and corruption, yet the sector is changing and changing quickly. In recent years the Government has made significant efforts to promote the region and what it has to offer to foreign mining companies, and they have been successful. To date, three international mining groups have entered the region bringing money, the will to provide best practices and greater transparency, a particular example is Mineria Texas Colombia, which bought the Muzo mine, the largest emerald mine in Colombia. . The effect of these “newcomers” has been an effort to formalize the sector and bring a basically hand-mined industry to a world-class mining region with best practices, procedures and equipment. With this in mind, the sector is perfectly positioned for METS companies seeking to enter the Colombian market, since everything is necessary.

Gold. The gold mining sector is one of the best known and best understood sectors in Colombia, although there has been a long history (and remains) of widespread artisanal gold mining, there have also been a number of foreign mining companies that sectors such as Red Eagle Mining, AngloGold Ashanti and Continental Gold have entered. Especially in the mid-2000s, a large number of foreign-owned junior mining companies were active in Colombia finding and developing a number of prospective projects, however, with the GFC and falling commodity prices, many of these companies eventually left the market, either by selling there projects or returning them to the original owners, which means that there are several exploration projects (some with drilling and resource statements), and some still do not have an investor or a company that progress on the project. This presents an opportunity for new mining companies looking for a project in Colombia.

The mining sector in Colombia continues to be an attractive place for foreign mining companies looking for projects and / or METS looking for new clients. Although there are some complexities and a lot to learn and understand for new companies entering the market, the opportunities exist and the potential is enormous. Combined with this, there is a greater government interest in helping foreign companies enter the Colombian market, by removing legislative obstacles, streamlining visa processes, and always working to improve the project permit application and approval process. miners.