Wednesday, August 26, 2015

Colombia's Caño Limón pipeline finally back online

On Wednesday, Colombia’s Caño Limón-Covenas pipeline finally came back online after being closed for 67 days. The pipeline is crucial to transporting oil out of the Colombian llanos, as it is the second-biggest pipeline in the country by volume, with the capacity to carry 220,000 bpd of crude oil from the department of Arauca to the Caribbean.

According to Reuters, this was the longest the pipeline has been closed town since it started working in the 1980s. The Colombian government blamed the shut down pipeline for the country’s failure to meet its oil production target of 1 million bpd in July.

In mining related news, four miners died in a mining accident in the municipality of Socha in the Colombian department of Boyacá on Monday night. By Wednesday, the corpses of all of the miners had been taken out of the mine. Other workers at the mine blamed its inadequate ventilation system for the gas bubble, which triggered the explosion. Mining and Energy Minister Tomás González assured that the Colombian government would fully investigate the accident in pursuit of a safe and legal mining industry.


In other mining news, nickel miner Cerro Matoso accused the National Mining Agency of applying an illegal tax formula on the company’s profits. Colombian business journal Portafolio explained that the Agency recently updated its formula for calculating its tax, but Cerro Matoso is incensed that the Agency is trying to retroactively apply this new formula to nickel production in 2012, 2013, and 2014.

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