Colombia says Zijin downplayed mine security risks to investors while seeking damages over attacks

Zijin Gold International

09/10/2026 24:48

Buritica has seen deadly attacks blamed on illegal miners 
Bogota says it took measures against illicit mining
Case could set a precedent as commodity booms intensify mining conflicts in resource-rich nations
By Divya Rajagopal
TORONTO, Oct 8 (Reuters) - Colombia has accused China's Zijin Mining 601899.SS of giving investors a misleadingly optimistic picture of security at its Buritica gold mine while seeking damages from the Colombian government over security problems there, according to arbitration filings released this week.
The allegations were made in Colombia's defense against a claim brought by Zijin before the World Bank's International Centre for Settlement of Investment Disputes, in which the company says the government failed to protect the mine from illegal miners and criminal groups.
Zijin, which acquired Buritica from Canada's Continental Gold in 2020, says attacks linked to illegal miners have injured and killed workers and caused heavy losses. According to Colombian media, Zijin is seeking about $500 million in damages but that amount has not been disclosed in its public filings. 
Colombia told the tribunal it had taken adequate measures to combat illegal mining and provide security for the mine. It also argued that descriptions of Buritica contained in a 2025 prospectus for the Hong Kong listing of Zijin Gold 2259.HK, the company's overseas gold-mining unit, were inconsistent with the claims being advanced in arbitration.
Colombia alleged Zijin had "misrepresented material facts" before the tribunal and failed to adequately disclose risks associated with Buritica to investors in the share sale, according to the filing.
The Bogota government said the prospectus presented Buritica as a healthy operation without significant problems despite the company's claims in arbitration that illegal mining and related violence had caused substantial damage.
Zijin Mining and its lawyers at White & Case did not respond to requests for comment. Lawyers for Colombia at Hughes Hubbard & Reed declined to comment.
The arbitration case is being closely watched as many resource-rich countries face security threats from illegal mining and criminal gangs. ICSID could require either side to pay damages. 
Zijin Gold raised about $3.2 billion in its Hong Kong listing earlier this year, one of the mining sector's largest share offerings.
Zijin is expected to respond to Colombia's allegations in November.

 (Divya Rajagopal in Toronto; Editing by Caroline Stauffer and Cynthia Osterman)
 ((divya.rajagopal@thomsonreuters.com,  Phone- +16472628751))