Canacol gas curbs force Colombia's Cerro Matoso ferronickel mine to halve output (updated)

Canacol Energy (Alberta)

08/07/2026 17:54

Adds context, request for comment

    BOGOTA, July 8 (Reuters) - Colombia's Cerro Matoso ferronickel mine said on Wednesday it had cut operations to about 50% after gas supply restrictions from Canacol Energy CNE.TO forced it to suspend regular operations on one of its two production lines.

        Cerro Matoso, owned by CoreX Holding and located in Colombia's northern Cordoba province, said it had spent a week operating at 75% of capacity because of the restrictions and warned it could indefinitely halt one line in coming days if the curbs remain in place or worsen.
The company said the disruption at one of South America's largest ferronickel mines has already affected more than 220 jobs, including the temporary suspension of about 100 employees and the reduction of more than 120 contractors. 
Cerro Matoso said its gas supply contract with Canacol runs through 2029, but that in early May the company asked a Canadian court to allow the early termination of several gas supply contracts in Colombia, including with Cerro Matoso.
Canacol did not immediately respond to a request for comment.
The miner said it had participated in court-led talks in good faith and remained open to a negotiated solution.

 (Reporting by Nelson Bocanegra; Writing by Kylie Madry; Editing by Daina Beth Solomon)
 ((Kylie.Madry@thomsonreuters.com;))