Mining

Colombia’s mining industry continues to feel the effects of the recent drop in commodity prices, particularly of gold. Gold production remains high, having risen by 7.7% to 519,472 oz in the third quarter of 2015, according to the National Mining Agency. Moreover, two new major gold projects received environmental permits in 2015 and are expected to add 60,000 oz and 450,000 oz, respectively, to current production levels. Meanwhile, with gold prices dropping to $1100 per oz at the end of 2015, from over $1900 per oz in the second half of 2011, export revenues have continued to decline. It is not all bad news for Colombia, however. The country could be one of the first to benefit from an expected rebound in the price of coal. The strong devaluation of the peso has given Colombia a cost advantage over many of its competitors, and the idle capacity at some of its mines means that production could be ramped up relatively quickly given the right conditions.