Mining market in Colombia
Industry highlights
3%
Mining sector's contribution to Colombia's GDP
6th
Largest coal exporter worldwide (4.45% of total) and 3rd largest for coke
$132 million USD
Capital expenditure for mining exploration projects in 2022
$1 billion CAD
Colombia ranked 6th in South American in Canadian mining assets abroad in 2022
160,000+
Jobs in Colombia's mining sector in 2022
24
TSX-listed mining companies have a presence in Colombia (20 are from Canada)
7th
In mining exploration in Latin American in 2022.
$20.4 billion USD
Total value of exports in 2022
Colombia is the fourth largest economy in Latin America. The country is advantaged geographically and is rich in mineral resources. The private sector has adopted the Canadian Towards Sustainable Mining Standard since 2021. Responsible business conduct and critical minerals are becoming increasingly relevant.
Key opportunities for Canadian mining companies in Colombia
- Environmental services
- Closure of mines
- Clean technologies (water management, decarbonization and sustainability solutions)
- Innovative solutions to improve efficiency (exploration and production)
Notable challenges for Canadian mining companies in Colombia
- Companies without a local presence in Colombia may face more challenges than locally established ones
- Business is conducted mostly in Spanish. Having a Spanish-speaking resource is an advantage
- Building trust with local contacts requires a long-term commitment
- International products and services are price sensitive in the market
- Recent law projects proposed by the new government have created uncertainty in the mining sector
Colombian business landscape
- Colombia's position on the continent allows it access to both the Pacific Ocean and the Caribbean Sea
- Canada and Colombia enjoy a dynamic and increasingly diversified bilateral commercial relationship, facilitated by the 2011 Canada-Colombia Free Trade Agreement
- Double taxation Convention between Canada and Colombia
Upcoming projects and events
- April 23-24: MinExpo Colombia 2024, Medellin
- September 2024: National Mining Congress, Cartagena
Summary
Given its strong geographic and economic conditions, the Colombian market represents an opportunity for business development in mining and decarbonization of the industry. Colombia is committed to achieving a 51% reduction in greenhouse gases (GHG) by 2030 and carbon neutrality by 2050. Colombian companies are mostly small to medium in size and are interested in acquiring technical and technological capacities.
Canadian companies can be successful in the market by partnering with local companies and by bringing new technologies relating to the decarbonization of the mining sector. Environmental services and clean technologies are both areas where Canada can become the partner of choice for Colombia.
For more information on the mining sector in Colombia, please contact bogotatd@international.gc.ca or sandra.gonzalez@international.gc.ca.
