Colombian mining production in decline

On Wednesday, president of the Colombian Mining Association Santiago Ángel explained that the latest results on Colombian mining production show a clear trend towards deceleration. He added that this makes it increasingly more difficult for the sector to reach the government’s goals for the industry.  

Overall, mining production fell 3.6%, driven by a 3.6% decline in coal production and a 4% decline in nickel production. Gold was the one bright spot, with production surging by 11.2% all the way to 107 million ounces. Even in the case of gold, though, much of this increase in production can be attributed to illegal gold mining.

Santiago Ángel, in an interview with Reuters, called on the Colombian government to support a plan to boost the industry’s competitiveness and attract international investment. He asserted that, “This industry can be a strong source of fairly important wealth for the Government and for Colombia, no just today but also in coming years, and so we believe that we can be a basis for saving the public finances of the country.”

But first, the Colombian government needs to pass a plan that would lower the costs of materials, imported machinery, tax relief for mining companies, legal security, and clear regulations. Ángel noted that foreign investment in the mining industry fell by 46% in 2014 over its level in 2013, so the sector greatly needs the government’s help to return to its previous levels of competitiveness.