Colombia's mining industry is facing growing pessimism about its future, according to the results of the 10th Burjula Minera study conducted by consultancy Jaime Arteaga y Asociados and Colombia's National Consulting Center (CNC).
The survey shows that while industry executives acknowledge that they are suffering from a lack of government support, the proportion of the general public living in mining municipalities who believe that mining is profitable is decreasing. It was done.
The survey was conducted among 278 managers in the mining sector and 261 respondents working in local governments, mining authorities and environmental regulators.
Of the businesspeople consulted, 49% said they would scale down their business in Colombia within the next five years if the current situation remained the same, while only 14% said they would expand their business in Colombia, and 37% said they would expand their business there. is expected to remain unchanged.
According to the survey, 34% of respondents believe that the lack of support from the Colombian government is the main reason why mining entrepreneurs think their business in the country will decline.
A total of 21% said lack of legal stability was the biggest problem for the mining industry, and 19% said it was difficult to obtain environmental permits.
Despite this, 68% of managers say their company's social investment has increased in the last year.
“This result shows that although public opinion remains confident in the mining opportunities, businessmen's pessimism and limited progress in government policy are likely to contribute to the metallurgical sector, particularly in Cundinamarca and Boyaca. “It shows that it is transmitted to municipalities that produce industrial coal, as well as municipalities that produce metals and precious stones in India, “Antioquia and Choco,'' said Jaime Arteaga, director of the consultancy firm, while presenting the findings.
The survey also revealed that the proportion of respondents who believe that progress has been made in the energy transition has decreased in the last year, reaching 48% in this year's edition, down from 54% in 2022 and 66% in 2021. Ta.
Of the executives consulted, 34% believed that progress had been made in the fight against illegal mining, and 38% believed that progress had been made in formalizing small-scale mining operations.
Colombia's mining sector has a series of important challenges remaining to resolve this year. This includes the establishment of state-run mining company Ecominerals, which is expected to be completed in the second half of this year. Amendments to the Mining Law. This includes changes to the mechanism for allocating mining areas, among other issues. Developing policies to protect, formalize and support small-scale mining. and the suspension of the award of contracts for open pit mining operations.
Industry businessmen say that the decree signed in January that allows the Ministry of the Environment to identify, demarcate and declare natural resource reserves for up to five years (“a further five years until compliance is ensured”) There are also concerns about the possibility of extending the contract for another year. or incompatibility of mining activities in protected areas,” the document states.
While the declaration of reserves is in effect, the authorities cannot grant environmental permits for the exploration or extraction of minerals.
Juan Camilo Nariño, president of the mining association ACM, told BNamericas in January that “government announcements regarding new regulations create uncertainty and the private investment sector must wait for clarity about the future before making decisions. It must be done,” he said.
