Colombia Reports

(Photo: Drummond)

Colombia is the 9th best option for those seeking to invest in mining, according to Behre Dolbear, a minerals industry adviser.

The South American country climbed two places since last year in a ranking of countries for mining investment. This means a return to the top 10, the country having held 7th place in 2013. The study took into account over 25 mining countries from around the world.

According to Cesar Diaz, ex vice-mining minister, the geological opportunity and geopolitical situation of Colombia are the distinguishing features which allow its position in the top 10.

Top 10 mining countries

  1. Canada,
  2. Australia
  3. United States
  4. Chile
  5. Mexico
  6. Peru
  7. Namibia
  8. Botswana
  9. Colombia
  10. Ghana

Diaz said that for Colombia to rise even further up the ranking it needs to improve infrastructure, long term legal security and the information given to communities regarding the impact of mining industry. Given that only 10% of the nation’s territory has so far been explored he believes Colombia must make advances in this regard, without forgetting biodiversity and environmental factors.

German Corredor, director of the Colombian Observatory of Energy, added that legal and fiscal stability, areas in which Colombia has improved, as well as economic conditions make a country’s mining industry a good investment.

Canada, Australia, the US, Chile and Mexico remain unchanged as the top 5. For Corredor this is due to traditional importance of mining along with clear legislation and favorable conditions for investment in all areas. The report adds that these countries have leading expertise both within government and private sectors.

The global mining industry — Colombia included —  looks bleak after falling prices over the last year mean that copper, silver and gold have decreased significantly in value. This is a problem for countries which rely on these exports as well as for investors who have had to reduce profit margins.

Dolbear’s analysis stressed that the economic and political stability of China and the Russian sphere of influence are worrying. Both countries are leading to changing perceptions and expectations for the future demand of minerals.

The report concluded that investment returns are heavily influenced by political risk and that as global economies recover from crisis prices will rise.

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