17 May Colombia’s mining sector closes in on $1.5 billion annual investment
The mining industry of Colombia is on the verge of receiving an annual investment boost of US$1.5 billion over the next five years, if the government can guarantee legal certainty to businesses.
Major mining firms across the South American nation are calling for better government regulations within the sector, which has long suffered as a result of weak institutional and legislative support.
Santiago Angel, head of the Colombian Mining Association said: “If we get the investment conditions we want, as an association and as an industry, we could again bring in between $1.5 billion and $1.7 billion a year, for a five-year investment of $7.5 billion.”
“This is an industry that in its best years brought between $2.5 billion and $3 billion a year. Unfortunately, 2015 and especially 2016 were very bad years for attracting investment – we fell to close to zero.”
Colombia’s mining industry has the potential to become the country’s biggest economic growth engine, as it holds some of the largest reserves of coal and gold on the continent.
This abundance of coal and gold has attracted international commodity giants such as Glencore and AngloGold, but they continue to face legal uncertainty with regards to mining projects.