Colombia
Can the country pull off another transformation?
Colombia has undergone an extraordinary transformation since the 2016 landmark peace deal with the Revolutionary Armed Forces of Colombia (FARC). The accord with the largest guerilla group brought an end to five decades of armed conflict and ushered in a period of economic revival, Colombia outpacing many of its Latin American peers in GDP growth. Medellín, Colombia’s second-largest city after Bogota, stands testimony to that transformation. Once the world’s most violent city, Medellín is now one of the greenest. From a hideout for the most powerful drug cartel in the world, Medellín has reborn into a tech-friendly hideaway for digital nomads. Starting in 2016, the plantation of millions of trees and plants has helped reduce temperatures within the city by 2 degrees Celsius.
Medellín is at the heart of another green transformation in Colombia, one powered by a new generation of mining. Medellín is the capital of Antioquia, the main department crossed by the Middle Cauca Belt hosting all copper and gold deposits in the country. While traditional mining, namely coal and emeralds, primarily takes place in the departments of La Guajira, Santander and Norte de Santander (for coal) and Boyacá (for emeralds), Antioquia and the smaller neighboring department of Cordoba are hotspots for copper-gold mining – the kind of resources that the government is currently pushing for.
Colombia’s mining industry is currently in flux. President Gustavo Petro wants to wean the country off coal and focus on critical minerals required for the energy transition. In 2023, the government updated the list of strategic minerals to include copper, nickel, gold, metallurgical coal, emeralds, phosphate, platinum and rhodium. However, before mining moves from the valleys of Santander to the mountains of Antioquia, Colombia must first reconcile its green agenda with mining more generally.
The election of Petro as Colombia’s first left-leaning president back in 2022 underscored a strong will for change in Colombia, following discontent with the former government of Ivan Duque, as well as heightened poverty rates exacerbated by the pandemic. Voters were also frustrated with the inconsistent implementation of the peace deal with FARC, as violence hiked up in 2021. Gustavo Petro represented a dramatic political shift. A younger Petro used to be a member of the now-disbanded M-19, a guerilla group that later turned into a political party. His running mate, Vice-President Francia Marquez embodies a progressive, green ideology, as an environmental activist and Colombia’s first Afro-Colombian VP.
Colombia has a highly ambitious target to reduce greenhouse gas emissions by 51% by 2030 and has therefore taken a hard line on fossil fuels. After deciding to stop granting new oil and gas exploration licenses, Colombia has also proposed a ban on coal licenses. At the beginning of this year, the country introduced a 1% tax on the production of fossil fuels to fund security efforts in the conflict-prone Catatumbo region, in the Norte de Santander, where rebels from the National Liberation Party (ELN), the last remaining armed group active in the country, have been accused of targeting former members of FARC. The new levy is only meant to last until the end of the year, but there have also been proposals to make it permanent, which raises questions about double taxation. In 2022, Colombia passed a substantial tax reform that raised the burdens for businesses, including surtaxes on the coal sector. While the government has made its disincentivizing position on coal clear, it has done little to incentivize the exploration and production of critical minerals. On the contrary, in 2024, Colombia adopted a decree that grants environmental authorities the power to halt mining procedures and suspend ongoing projects. The government has also promised to block open-pit mines in areas where local communities oppose them. Put differently, a future in green minerals, as purported by the government, not only lacks support, but is facing increased obstacles. More changes are brewing, according to Juan Camilo Nariño Alcocer, the president of Asociación Colombiana de Minería (ACM): “The government is in the process of introducing a new Mining Code, currently under consultation with communities in accordance with ILO Convention 167. There is also a proposal to create a state-owned mining company, Ecominerales. (..) There is no set timeline for the new mining code coming into law. The government aims to move forward with prior consultations with Afro-descendant and Indigenous communities before presenting the Mining Code for discussion in the Senate.”
“Regardless of the political situation on the ground or which government is taking a turn, spaces like gold and copper are driving investment interest to Colombia. The government has done very little to incentivize mining, but it has also done relatively little to deter it."
Carlos Felipe Barrera, Managing Director South America, John T. Boyd Company
Good mining, bad mining: Colombia’s largest mining sector faces demotion
Coal: Mining accounts for 2.7% of Colombia’s GDP, 30% of total exports, and 15% of FDI, according to ACM. By these figures, all mining is good mining for Colombia’s economy, and coal mining, in particular, is the biggest generator of revenues in the country. The broader coal value chain supports 650,000 jobs and underpins 70 municipalities, according to the National Federation of Coal Producers (Fenalcarbón). Yet Colombia’s policies in coal have been divorced from the economic realities of the country, as explained by Carlos Cante, the executive president of Fenalcarbón. According to Fenalcarbón, Colombia has an annual capacity of 80 million t of coal per year, of which about 90% is thermal and the rest is metallurgical coal. Out of the 1,000+ mining titles, 95% are held by small and medium-scale producers located primarily in the center of the country, but the large-volume production and coal exports are driven from the large mining houses like Cerrejón (Glencore), Drummond, or Sator, located in the north of the country. Last year, the country exported 64 million t of coal and coke, but this year producers are expected to cut back. While coal prices have corrected back to 2019-2020 levels, production costs have increased, leaving producers with very tight or even negative margins. These margins are further impacted by logistics costs, as consumption has shifted from Europe to Asia, a long way from Latam. The 2025 tax on production further squeezes margins.
Under these conditions, the coal industry has concentrated on staying resilient, according to Homero Gomez, founder and CEO of Carbomax, a diversified coal producer in the country: “Colombia will see up to a 30% decrease in volumes of thermal, coking coal, and coke (this year). We are also looking to reduce output, even though we still make a margin. Most importantly, we want to honor our commitments to our clients. While exports will be lower in 2025, we hope to compensate in 2026 by increasing capacity.” Another way to reclaim margins is by looking at closer export markets like Brazil, Mexico, the Dominican Republic, Honduras and Guatemala. According to Carlos Cante, the executive president of Fenalcarbón, African countries also hold promise, developing nations within the continent increasingly seeking coal as a source of reliable and affordable energy. Colombia can also lean into another advantage, namely the high quality of its coal. “We believe Colombia can increase its relevance as a supplier to nearby regions and even to new, distant markets where quality outweighs proximity. Our coal has high calorific value, low ash and sulfur content, and excellent metallurgical properties, making it ideal for blending with lower-quality coal from other sources,” said Cante.
Colombia’s traditional outputs
Emeralds: Emerald mining is a staple of Colombia’s traditional mining sector, and formalization through the involvement of large-scale industrial producers is increasingly encouraged. Colombia ranks among the world’s largest emerald producers, but globally the gemstone is still largely sourced informally, a practice that has fuelled “green wars.” The few industrial emerald producers go to great lengths to ensure transparent and sustainable value chains.
In Boyacá, Fura Gems has invested approximately US$130 million since acquiring the historic Coscuez emerald mine in 2017. The mine offers indirect benefits to 7,000 people, according to Rupak Sen, Fura’s chief marketing officer: “For the first time in the mine’s history, everyone has formal employment, full benefits, and access to social security. That alone is a game-changer. As the sector continues to formalize and professionalize, companies like Fura are helping the country reclaim its status as a world leader in premium emeralds.”
Nickel: Colombia is the largest producer of nickel in South America and 11th in the world. Like coal, nickel also faces pricing headwinds. Colombia’s largest nickel mine, and indeed one of the largest globally, holding the 10th biggest nickel reserves in the world, is Cerro Matoso, operated by Australian miner South 32. South 32 is pondering the sale of the mine, which has been the subject of legal disputes with the government.
Metallurgical coal: While the government decided the future does not lie in thermal coal, Colombia’s metallurgical coal remains a sought-after material, both from a government and market perspective. Colombia is the fourth-largest coke exporter in the world, and volumes have been increasing. If in thermal coal, Carbomax is “neither expanding nor downsizing,” the diversified producer is looking to double capacity to 500,000 t/y at its underground metallurgical coal operations in the Norte de Santander. The low-phosphorous, high-quality coking coal is of value in the ferroalloy markets, particularly in the ferrochrome markets in Brazil, Finland and India that the company serves. Carbomax is also preparing to launch a new production line for ferrosilicon and silicon metal.
As part of a diversification strategy started five years ago, Carbomax is also investing in gold and copper exploration in La Guajira, Bosconia and Cordoba. La Guajira and Bosconia are both coal-focused districts, hosting the largest coal mine in Latam, Cerrejón. This shows the northern regions consecrated to coal mining are now being opened up for other metals. Aris Mining, one of the largest gold miners in the country, is also stepping outside its home turf in Antioquia, where it operates two other mines, through the development of the Soto Norte gold-copper project in Santander. This signals the hybridization of Colombia’s coal-mining region through the addition of critical minerals such as copper and gold. Soto Norte hosts 8.5 million oz of gold (measured and indicated) at a 5.5 g/t Au grade.
The future lies elsewhere: Copper and Gold on the Cauca belt
When it comes to copper and gold, two critical metals that the government, at least verbally, wants to see more of, Colombia remains vastly underexplored. According to the ACM, only 3% of the country is currently covered by a mineral license, while the rest is untitled. It is believed almost 80% of the 70 t of gold Colombia exports annually comes from informal mining, according to Colombia 1, an independent local publisher. According to a study by UPME, Colombia has up to 9.7 million t of copper reserves, still 10 times less than its bigger brothers in South America like Chile and Peru, but nevertheless a significant amount for a country with only one copper mine of modest size (El Roble, operated by Atico Mining).
The host of all of the main gold and copper deposits within the country is the Middle Cauca belt, located in west-central Colombia, and considered one of the most underexplored regions in the world.
Gold: The Cauca belt hosts Colombia’s three largest gold mines: Buriticá, operated by Zijin Mining, Segovia, of Aris Mining, and Cisneros, belonging to Antioquia Gold. Mineros is also producing gold from the Nechí Alluvial property, about 190 km north of Medellin, with over 10 years of reserves based on the current LOM plan. Denarius joined the list of producers after bringing into production Zancudo, a small operation based on a 1 million oz resource, with high grades at 7 g/t Au and over 100 g/t Ag, and plenty of upside.
The project pipeline is also fully concentrated in that same district and it includes projects like AngloGold Ashanti’s greenfield copper-gold La Colosa and Quebradona projects, together holding reserves of 2.6 million oz Au and 3,250 million lb Cu. La Colosa is currently under force majeure, pending the issuance of an environmental permit. AngloGold sold its third project in Colombia, Gramalote, to B2Gold in 2023. Gramalote could produce 185,000 oz/y for 12 years once brought into production. The company is preparing an FS for 2025 and is to submit a modified ESIA to reflect modifications to the processing plant.
Junior explorers like Collective Mining, Quimbaya Gold and Orosur Mining are also focused on the same prolific Middle Cauca belt in the Antioquia district. According to Louis Castro, the chairman of Orosur Mining, provincial attitudes in Antioquia differ from those of the national government and are more pro-mining, given the region’s long mining tradition.
Copper: Besides the El Roble copper mine, Colombia’s copper mining industry is at an exploration and pre-production stage. Some of the main projects include AngloGold Ashanti’s Quebradona deposit in Antioquia, holding 1.3 million t of copper and 2.6 million oz of gold, about 60 km outside of Medellín, and the Alacran deposit of Cordoba Minerals, recently sold to JCHX, and located about 160 km away from Medellin in the Cordoba department. While Cordoba Minerals filed for the Environmental Impact Assessment Study (EIA) at the end of 2023, AngloGold’s permit for the Quebradona copper-gold project has been shelved due to insufficient information on the project’s environmental impact by the National Environmental Licensing Agency (ANLA). The company appealed the decision but this was dismissed, so now the project can only move forward if a new ESIA is conducted.
Copper Giant Resources (formerly Libero Copper) has also acquired a project formerly held by AngloGold Ashanti, Antofagasta, and B2Gold. The Mocoa project could be one of the largest undeveloped copper-molybdenum deposits in the world, according to its developer. Copper Giant started testing this hypothesis through its largest drilling campaign to date.
“The allure of Colombian emeralds lies in their deep color saturation, clarity and brilliance—particularly those from the Muzo Formation, where the Coscuez mine is located. The term ‘Coscuez Green’ is used by gem experts to describe the vivid, luminous hue associated with the site.”
Rupak Sen, Chief Marketing Officer, Fura Gems
Security: Lessons from the storied “Comuna 13”
As explored throughout this article, Colombia’s mining policies are marked by contradictions. On one hand, the country wants to become a leading player in the energy transition, on the other, the current regulatory framework for mineral development is far from encouraging such development. Simultaneously, while efforts to phase out coal mining align with global decarbonization goals, the move risks undercutting a major backbone of Colombia’s economy. Paradoxically, it could also hurt energy-intensive industries such as mineral processing, since the current hydropower-based grid still depends on coal-fired plants to stay resilient during periods of low water availability, like El Niño years. A weakened power grid could hinder the development of downstream value chains in critical minerals.
Since this article began with themes of transformation, it is fitting to conclude with a closer look at Comuna 13, a Medellín neighborhood that has become a symbol of dramatic change through investment and peacebuilding. Once an isolated mountainside refuge for those fleeing violence in the 1980s, Comuna 13 became a stronghold for the FARC in the 1990s. Paramilitaries took control in 2002, and were replaced by gangs two years later. Change began in earnest in 2008, when a cable car was introduced, becoming the first gondola system built exclusively for public transport. In 2011, outdoor escalators were added. Today, Comuna 13 is a major tourist destination and a vibrant hub for street art.
Colombia’s government has resumed peace talks with the ELN, the country’s last active armed group, which operates largely in mineral-rich areas such as Norte de Santander and along the Venezuelan border. Diplomatic relations with Venezuela have also been restored, after years of estrangement during the previous Colombian administration. The overall security situation continues to improve, but Colombia is still missing out on critical investments. In 2024, FDI in mining and quarrying fell by 60%, according to the Central Bank. Nonetheless, mining and petroleum remain among the top sectors attracting FDI in Colombia.
Ian Harris, president and CEO of Copper Giant Resourcesand a Medellín resident, offers his experience of the country’s investment climate: “The old image of Colombia only exists today in the stigma associated with the country, whereas the reality is very different. I have worked across Latin America, and I can say that Colombia is probably the easiest place to do business, thanks to its robust institutions, healthy financial sector, buoyant construction industry, and, most importantly, the vivid entrepreneurial spirit of Colombians.”
COLOMBIA AT A GLANCE
Sources: World Bank, Worldometer, OEC
SURFACE AREA
140,619 km2
CAPITAL
Bogota
POPULATION
52 million
MEDIAN AGE
32.5 years
LITERACY RATE
96%
MAIN EXPORTS GOODS
Crude Petroleum, Coal Briquettes, Gold, Coffee, Refined Petroleum
GDP, CURRENT USD
363.49 billion
GDP PER CAPITA, CURRENT USD
6,947.4
MAIN MINING RESOURCES
Coal, gold, emeralds, nickel, copper
FDI Evolution
Key players
- Agnico Eagle
- Antioquia Gold
- AngloGold Ashanti
- Aris Mining
- Atico Mining
- B2 Gold
- Carbomax
- Collective Mining
- Colombian Natural Resources
- Compañías Muzo Colombia
- Cordoba Minerals
- Denarius Metals (Zancudo Metals)
- Drummond
- Fura Gems
- Glencore (Cerrejón)
- GoldMining Inc.
- Grupo Coquecol
- LCL Resources (Miraflores Compañía Minera)
- Copper Giant Resources (formerly Libero Copper)
- Mineros
- Orosur Mining
- Outcrop Silver
- Paz del Río
- Quimbaya Gold
- Sator
- South32
- Zijin Mining (Continental Gold)
Did you know?
Colombia is one of the 17 mega-diverse countries in the world.
Article header image by ronedya at Adobe Stock