Having grown in recent decades to become a key player in South America’s mining landscape, Colombia’s extensive exploration potential and commitment to sustainable mining practices make it ripe for substantial international and domestic investment.
SPOTLIGHT ON COLOMBIAN MINING
South America, home to some of the world’s most extensive mining investment regions, boasts an abundance of mineral resources.
Indeed, many countries across the continent hold substantial growth potential, brimming with copper, lithium, iron ore, nickel, and gold deposits.
Colombia, in particular, is a leading mining nation in South America, and with good reason. The country possesses one of the world’s largest coal deposits alongside a substantial level of nickel and gold, not to mention its huge investment prospects, with vast areas of ground yet to be explored.
In the last 30 years, in preparation for significant levels of foreign direct investment (FDI), the Colombian government has implemented a regulatory framework that has primed the industry for future development. The 1991 Constitution of Colombia, for instance, set out a vast range of socioeconomic and cultural rights, establishing the parameters for the country’s exploration and extraction activities.
As a result, the state became the executive owner of Colombia’s non-renewable natural resources, managing its mineral commodities and regulating extractive projects. Today, such activities are funneled through the Ministry of Mines and Energy, established in 2001.
In the same year, the Colombian Mining Code was introduced, which set the foundations for what the industry has now grown to become. The code maintains clear regulations for the exploration, mining, and production of minerals across the country, establishing a 30-year mineral rights concession agreement.
More recently, the government announced plans to double the country’s gold production by 2030 in the face of many regulatory and socioeconomic obstacles that have delayed major mining operations.
However, with new draft reforms to the mining code on the horizon and a continuously stabilizing economy, Colombia’s mining industry is set to turn a corner.
A key component of this uptick is the government’s commitment to sustainable mining, cultivating Colombia to become a key mining player in the ongoing energy transition.
Q&A WITH THE COLOMBIAN MINING ASSOCIATION
Representing a mining industry flourishing with potential, we learn about the work of the Colombian Mining Association (ACM) and its efforts toward promoting the sector as a pillar of the country’s socioeconomic development. President, Juan Camilo Nariño Alcocer, delves deeper into the dynamic industry
Established in 2014, ACM is a unique union of Colombian mining entities that seeks to reengineer the country, bring together the business mining sector, and purposefully facilitate projects that contribute to positive economic growth across local communities.
In addition, ACM operates as a regulatory framework and reference point for constructing policy and public opinion around mining. This helps promote a forum to attract FDI, which in turn fosters innovation, technological development, and a growing international presence for the industry.
With the founding goal to have the Colombian mining sector recognized as a contributor to the country’s development, ACM is poised to propel the industry into a sustainable future and be a key contributor to the nation’s energy transition.
Firstly, could you tell us about the origins of ACM and your initial vision?
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Juan Camilo Nariño Alcocer, President (JCNA): ACM was created with a clear purpose – to represent and strengthen the formal mining industry in Colombia, ensuring that it operates according to standards of sustainability, responsibility, and global competitiveness.
Since its inception, the association has worked to make mining a pillar of the country’s development, boosting employment, investment, and growth across the nation.
Our work goes beyond union representation; we have become a key player in the development of public policies through dialogue with the government and articulating with international actors.
Today, ACM is the voice of a mining industry committed to innovation, environmental protection, and creating opportunities for thousands of Colombians. We believe in mining that not only extracts resources but also positively impacts communities and the national economy.
What is your take on the mining industry in Colombia at the moment? Would you say it’s a particularly exciting or challenging environment to work in?
JCNA: Mining in Colombia is facing a complex moment but also one of opportunity. We are a country with enormous geological potential and minerals that will be key to the global energy transition, such as copper, nickel, and gold.
There are also obvious challenges, such as regulatory uncertainty, deteriorating security in some regions, and limited incentives to attract FDI.
The truth is that Colombia cannot afford to turn its back on mining. It is a sector that accounts for more than 30 percent of national exports, purchases COP14 billion in goods and services each year, and generates formal employment in regions where few industries can.
At ACM, we are working to ensure that mining continues to be an engine for development. We believe that with clear rules, legal certainty, and policies that reflect global realities, mining will continue to be a socioeconomic pillar for the country.
“We believe that with clear rules, legal certainty, and policies that reflect global realities, mining will continue to be a socioeconomic pillar for the country”
Juan Camilo Nariño Alcocer, President, Colombian Mining Association
How do you represent the collective interests of your members and assist them in the generation of responsible and sustainable mining, alongside establishing linkages with global entities?
JCNA: ACM represents responsible mining that operates to the highest standards and understands that its license to operate depends on its commitment to community development and sustainability.
At ACM, we have led the implementation of the Towards Sustainable Mining (TSM) standard in Colombia, an internationally recognized self-regulatory model that allows companies to measure and improve their performance in environmental, social, and governance practices (ESG).
TSM has been adopted by leading mining jurisdictions such as Canada and Australia, ensuring that Colombia is at the forefront of the global industry.
We are now in the third year of implementing TSM, and ACM member companies have progressed in self-assessing the standard’s nine protocols, which address key issues such as tailings management, respect for Indigenous rights, community relations, energy efficiency, and water conservation.
This process not only reflects the industry’s commitment to sustainability but also allows society and government to monitor progress with full transparency.
We also maintain an ongoing dialogue with multilateral organizations, mining associations in other countries, and global bodies that promote sustainable development. Colombia has the potential to be a strategic player in the production of essential minerals for the energy transition, and our role at ACM is to ensure the industry is prepared for this challenge with world-class standards.
“Colombia has the potential to be a strategic player in the production of essential minerals for the energy transition, and our role at ACM is to ensure the industry is prepared for this challenge with world-class standards”
Juan Camilo Nariño Alcocer, President, Colombian Mining Association
In what ways does the association position the mining industry as a pillar of Colombia’s socioeconomic development?
JCNA: Mining in Colombia is not just an extractive activity; it is a strategic industry that drives economic development, strengthens production chains, and generates regional wealth. Its impact on the economy is undeniable, and its role in the productive transformation of the country is increasingly evident.
Each year, the mining sector invests more than COP14 billion in the purchase of national goods and services, boosting key sectors such as manufacturing, metalworking, transport, infrastructure, technology, industrial inputs, and agribusiness.
This productive link not only strengthens thousands of companies in the country but also contributes to the reindustrialization of Colombia and the creation of formal and quality jobs.
However, mining is not only an economic engine – it is also a key ally in regional development and nation-building. In many areas of the country, the sector’s presence has made it possible to provide infrastructure for education, health, roads, and public services, fostering development that goes beyond mining.
Globally, countries that have been able to take advantage of their mineral resources have built stronger, more diversified economies.
Therefore, Colombia has the opportunity to consolidate a modern, responsible, and sustainable mining model that guarantees not only the exploitation of its natural wealth but also transformation into progress, well-being, and competitiveness for all Colombians.
At ACM, we continue to work to ensure the industry is recognized for what it truly is – a strategic pillar for the country’s growth and an engine of community development. The challenge is great, but the sector’s commitment is even greater.
Finally, how do you see the nation’s mining industry developing in the next five years? Are you optimistic about the future?
JCNA: The future of Colombian mining depends on the decisions we make today. The world is in a race to secure critical minerals for the energy transition, and the country has a unique opportunity to position itself as a strategic supplier of these resources.
Currently, 70 percent of clean energy technologies rely on minerals such as copper, nickel, and lithium, and global demand continues to grow.
If the nation can make progress in the exploration and development of new projects, we could be on the verge of a major economic transformation, driving new investment, creating formal jobs, and strengthening public finances.
However, this will only be possible if there is a stable regulatory framework, clear rules of the game, and legal certainty for investment.
Regulatory stability and business confidence will be crucial if Colombia is to keep up with the global competition for these resources.
Currently, countries such as Canada, Australia, and Chile have made significant progress in attracting sustainable mining investment, recognizing that the sector is not only essential for the energy transition but also for socioeconomic development.
At ACM, we are optimistic about the future of the sector. We believe in a mining industry that not only contributes to the national economy but also drives regional development, generates formal employment, and operates with the highest standards of sustainability.
Mining companies in Colombia have demonstrated their commitment to global best practices, and the country has all the ingredients to consolidate itself as a benchmark for sustainable mining.
However, time is short. If Colombia does not make strategic decisions now, we risk losing key investments and seeing other countries take advantage of the boom in demand for minerals.
It is time to develop a long-term vision that recognizes mining as an essential sector for the country’s development and a key player in the global energy transition.
COLOMBIAN MINING ASSOCIATION PARTNER
