MINERAL INDUSTRY IN COLOMBIA


Mineral industry of Colombia

Mineral industry of Colombia refers to the extraction of valuable minerals or other geological materials in Colombia. Colombia is well-endowed with minerals and energy resources. It has the largest coal reserves in Latin America, and is second to Brazil in hydroelectric potential. Estimates of petroleum reserves in 1995 were 3.1 billion barrels (490,000,000 m3). Colombia also possesses significant amounts of nickel and gold. Other important metals included platinum and silver, which were extracted in much smaller quantities. Colombia also produces copper, small amounts of iron ore, and bauxite. Nonmetallic mined minerals include salt, limestone, sulfur, gypsum, dolomite, barite, feldspar, clay, magnetite, mica, talcum, and marble. Colombia also produces most of the world's emeralds. Despite the variety of minerals available for exploitation, Colombia still had to import substances such as iron, copper, and aluminum to meet its industrial needs.

Materials recovered by mining in the country include oil, with proved reserves of 1,506,000,000 bbl (239,400,000 m3) (2006 estimate) and natural gas, with annual production of 6.18 billion m3 (2004 estimate) and reserves of 114.4 billion m3 (1 January 2005 estimate).

In 1976, Started the development of Cerrejón Coal mine, located in the Guajira Peninsula. It is the largest mining operation in Colombia and among the largest open pit coal mines in the world. The legal entity managing the Cerrejón operation is known as the Cerrejón Coal Company, and is a joint venture of three international mining firms BHP Billiton, Anglo American PLC and Glencore International AG, each with a 33.3% shareholding; in 2006, Glencore's operations were bought by Xstrata Plc. The 2008 coal production in Cerrejon was calculated in 31.2 million tons. Other locations of coal mines in Colombia are: Sogamoso, Tunja, Paipa, Zipaquira, Tabio, Neusa, Chinacota and Chitaga among others.

The production of gold during 2008 was calculated in 15482 kg, with an increase of 34.2% over the previous year. As of 2009, La Colosa mining project (to be exploited by AngloGold Ashanti) near Cajamarca, Tolima is in planning phase, with calculated reserves of 12.9 million ounces. However, there is controversy about the possible environmental damage. In the Colombian economy, Gold is the most important metal in terms of short-term revenues.

The Cerromatoso nickel mine, located in Montelíbano, Córdoba Department at northern Colombia, combines a lateritic nickel ore deposit with a low cost ferronickel smelter. It produces an average of 52000 tons of nickel/year, which places this mine in the second place of nickel producers worldwide. Cerromatoso is currently owned by BHP Billiton. Disagreement among the direction and the trade union workers, with frequent strikes produced heavy losses during 2008.