Drama for the Colombian mining sector

According to Luz Stella Ramírez, vice president of the National Mining Confederation, the Colombian mining sector has planned a national strike for February 18 to protest the Colombian government’s actions against the sector. According to the Confederation, the government has violated promises that it made last year.

In other mining-related news, China announced that, for the first time in a century, it would reduce its consumption of carbon, looking to boost renewable energy’s share of the country’s energy consumption to 20%. The move could have significant consequences for Colombia, as Colombia is the world’s fourth-leading coal exporter, with the mineral comprising 12% of the country’s exports. Compounding the effect of reduced remand, global coal prices have also been falling for several years. One possible solution is for Colombian companies to diversify their mining portfolio with out leaving the mining industry entirely.

Colombian coal companies aren’t the only ones suffering, as Gran Colombia Gold and AngloGold Ashanti, two of the leading gold mining companies in Colombia, have both suffered rough weeks. To add insult to injury, Goldex, the main gold trading company in Colombia, in the country is being investigated for supposedly having laundered 2.3 billion Colombian Pesos. Gold mining companies are also battling depressed global gold prices, and on a local level, have to contend with the growing scourge of illegal mining in Colombia. Officials are worried that falling foreign investment in the mining sector will spur the growth of illegal gold mining.