Friday, November 13, 2015

Colombia deals a blow to illegal mining in Buenaventura

On Friday, the Colombian authorities briefed the press about a successful raid carried out against illegal mining operations in the port town of Buenaventura, located on the Colombian Pacific Coast. The raids focused on the neighborhoods of Córdoba and Zaragoza, and resulted in the arrests of five people and the destruction of eight excavators.

Colombian Minister of Defense Luis Carlos Villegas told El Tiempo that, “A very important operation was carried out that will have an impact on the business of illegal mining of almost 3.5 billion Colombian pesos. Eight yellow ore extractors were destroyed and five people were caught red-handed.” Minister Villegas flew to the area of the raids, and added that these are just a few of numerous operations being carried out by the Colombian armed forces against illegal miners.

In oil-related news, El Espectador reported on the financial difficulties confronting Canadian oil company Pacific Exploration Production Corp. The oil company has debt payments of $1.3 billion due at the end of the year, but it does not have the cash on hand to meet these payment obligations, and so Pacific is desperate to renegotiate the terms of its debt. Oil industry observers are convinced that Pacific’s creditors are willing to negotiate, but it remains to be seen what terms they will demand.


In other mining-related news, Colombian coal production has increased slightly so far in 2015 as compared to the previous year. Despite lower coal prices, production increased 2.5% to a total 65.6 million tons for the first nine months of the year. The Colombian coal sector has also had to combat the problems of transportation restrictions and general financial instability.

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