Australia miners ‘missing in action’ in Colombia

JOHANNESBURG (miningweekly.com) – Australia’s resource houses are “missing in action” in Colombia, Latin America’s third-largest economic powerhouse, and need to move quickly to increase their engagement with the mineral-rich State, said Colombian Mining Association president Santiago Angel Urdinola.

Addressing the Paydirt 2016 Latin America Downunder conference in Perth on Wednesday, Urdinola said that Colombia was consistently reporting growth rates of 3% or more and that the country’s foreign direct investment came primarily from Europe, the US and Canada, but not Australia.

He added, however, that there was still substantial opportunity for Australia to invest in mining in Colombia, which he described as being “chock full” of minerals.

“What we have . . . is a very well established mining industry and we outperform our peers – behind just Chile and Peru – in our mining investment attractiveness. Australia would understand that environment,” said Urdinola.

He stated that Colombia had never defaulted on foreign investment and that the country, which boasted big international players in its resources mix, aimed to operate in accordance with global best practice.

“Colombia . . . has geological competency and we have recognised and acted on the need to do a fair job on mining regulation,” he said.

Urdinola added that Australia could help mentor junior explorers and miners coming into Colombia, as Australia had the skills, expertise and experience from its own domestic and international mining profile to forge successful new partnerships with miners seeking to operate in Colombia.

He also noted that Colombia, among other commodities, was prioritising its coal and copper profiles – commodities that Australia’s resources sector was “massively skilled” in.

“We want Australia in our mining sector and, to that end, we are working to increase our competitiveness and appeal, guarantee legal certainty, minimise red tape procedures,  improve our sector’s reputation and boost the overall productive chain.”

Colombia currently had 21 international agreements in place for protection of investments and 11 double taxation agreements intended to eliminate or reduce these issues for foreign investors.

Mining exports represented 18% of Colombia’s total exports, with coal accounting for 65% of that trade.

Colombia was the world’s largest producer of emeralds but was also rich in coal, gold, silver, platinum, nickel, iron, salt and limestone.