Colombia wants to become player in copper in next few years -government official

Atico Mining

19/07/2019 14:00

By Luis Jaime Acosta
    BOGOTA, July 19 (Reuters) - Colombia is looking to become a
notable producer of copper within the next few years, the head
of the national mining agency said, in a bid to diversify its
mining output without neglecting production of coal and gold.
    Mining in Colombia has historically been focused on large
coal mines along its northern coast and relatively small scale
gold and emerald operations in the Andes. 
    But following a 2016 peace deal between the government and
the largest Marxist rebel group and interest from international
miners, Colombia is looking to explore for new minerals in
previously inaccessible areas. 
    "We have the potential, but we're an unexplored country in
terms of copper," said agency president Silvana Habib in an
interview on Thursday. "We're located in a favorable geological
environment, the Andean range, we share that copper belt with
neighboring countries which are more advanced in copper."
    Initial estimates by companies show measured or indicated
copper resources of close to three million tonnes and more than
a million tonnes of potential reserves in provinces along
Colombia's northern and western coasts, Habib said.
    "We want to see ourselves in the ranking of copper-producing
countries in the short and medium term," she said.
    Just one mine, Atico Mining Corp's  ATY.V  project in
northwestern Choco province, is so far producing copper, Habib
said, with an output of 10,000 equivalent tonnes per year. 
    AngloGold Ashanti Ltd  ANGJ.J , Cordoba Minerals and Minera
Cobre are moving ahead with exploration work at their own sites.
    Canada's First Quantum Minerals Ltd  FM.TO  owns a 10% stake
in the Minera Cobre project in Choco, Habib said.
    AngloGold's Quebradona exploration has already faced local
opposition similar to efforts which forced the company to
abandon a $2 billion gold project in 2017. 
    Exploration work was briefly halted this year before a
provincial environmental authority said it could continue.
 urn:newsml:reuters.com:*:nL1N20F0E4
    Mining companies in Colombia have faced a raft of troubles
from community votes to environmental restrictions.  urn:newsml:reuters.com:*:nL2N23P1GI
    But Habib said a 2018 court ruling that stops local votes
from halting projects has given investors more security, and 
efforts to get community support and smooth licensing have been
well received.
    Meanwhile coal, Colombia's second-largest source of foreign
exchange, will remain important to the economy, Habib said.
    Colombia, the world's fourth-largest producer of coal,
expects an output of 84 million tonnes this year, similar to
last year's despite a fall in international prices. Gold output
is anticipated at 35 tonnes.

 (Reporting by Luis Jaime Acosta; Writing by Julia Symmes Cobb;
editing by Grant McCool)
 ((julia.cobb@thomsonreuters.com; +57-316-389-7187))