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 . 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 (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).Unidad de Planeación Minero Energética - UPME (2004), Boletín Estadístico de Minas y Energía 1994 - 2004. PDF file in Spanish.
Minerals—in particular coal, oil, and natural gas, but also emeralds, gold, and nickel—have played an important role in Colombia's GDP and foreign trade in the last 20 years. Accounting for only 1.4 percent of GDP and 13 percent of total exports between 1980 and 1984, minerals represented about 5 percent of GDP and 42 percent of total exports in 2006. The minerals industry has compensated to a certain extent for the decreasing role of agriculture and has expanded the importance of commodities for the economy as a whole. Colombia is the world's leading source of emeralds, and illegal mining is commonplace. Illegal mining, especially of gold, has grown due to Colombia's aggressive counter narcotics policies, which increase the risks associated with the drug economy.International Crisis Group. "http://www.crisisgroup.org/~/media/Files/latin-america/colombia/053-the-day-after-tomorrow-colombia-s-farc-and-the-end-of-the-conflict.pdf ", CrisisGroup.org. 11 December 2014. Retrieved 11 December 2014. However, production of precious minerals is small scale despite high international prices for minerals such as gold.Roberto Steiner and Hernán Vallejo. "Mining and energy". In Colombia: A Country Study (Rex A. Hudson, ed.). Library of Congress Federal Research Division (2010).
History
Mining of kaolinite and hematite for pottery pigments started in what is today Colombia since the mid-late neolithic, with archaeological evidence of ceramic production and sedentary groups living in El Abra settlements and the Colombian Caribbean coast (near the towns of San Jacinto, Monsú, Puerto Chacho, and Puerto Hormiga archaeological site) beginning around the year 5940 BCE around the town of San Jacinto. This would place these pottery shards among the oldest ever recovered anywhere. The earliest examples of gold mining and goldwork have been attributed to the Tumaco people of the Pacific coast and date to around 325 BCE. Gold would play a pivotal role in luring the Spanish conquistadores to the area during the 16th century.
Gold was considered sacred by most of the Precolumbian civilizations of the area. In Muisca mythology, Gold (Chiminigagua) was considered itself a deity, and the force of creation. Copper mining was very important for the classic Quimbaya civilization, which developed the tumbaga alloy.
Although significant in the colonial economy, it never commanded a large portion of Colombia's GDP in modern times. With the discovery and exploitation of large coal reserves, however, the role of mining in the national economy expanded in the late 1980s.
Mineral resources of Colombia Oil
The discovery of of high-quality oil at the Cusiana and Cupiagua fields, about east of Bogotá, has enabled Colombia to become a net oil exporter since 1986. The Transandino pipeline transports oil from Orito in the Department of Putumayo to the Pacific port of Tumaco in the Department of Nariño. Total crude oil production averages ; about is exported. +Oil Production 2011-2021 (kb/d)2011201220132014201520162017201820192020202191594410109901006886854865886781738 The Pastrana government liberalized the petroleum investment policies, leading to an increase in exploration activity. Refining capacity cannot satisfy domestic demand, so some refined products, especially gasoline, must be imported. Plans for the construction of new refineries are under development.
Natural gas
While Colombia has vast hydroelectric potential, a prolonged drought in 1992 forced severe electricity rationing throughout the country until mid-1993. The consequences of the drought on electricity-generating capacity caused the government to commission the construction or upgrading of 10 thermoelectric power plants. Half will be coal-fired, and half will be fired by natural gas. The government also has begun awarding bids for the construction of a natural gas pipeline system that will extend from the country's extensive gas fields to its major population centers. Plans call for this project to make natural gas available to millions of Colombian households by the middle of the next decade.
Starting in 2004, Colombia became a net energy exporter, exporting electricity to Ecuador and developing connections to Peru, Venezuela and Panama to export to those markets as well. The Trans-Caribbean pipeline connecting western Venezuela to Panama through Colombia was inaugurated by October, 2007, thanks to cooperation between presidents Álvaro Uribe of Colombia, Martín Torrijos of Panama and Hugo Chávez of Venezuela. +Natural gas Production 2011-2021 (billion cubic metres)2011201220132014201520162017201820192020202110.511.513.212.311.612.011.812.412.612.512.6 Since 2022, Colombia has encountered new challenges in its energy sector. President Gustavo Petro, with a strong focus on combating climate change, has declined to issue licenses for new natural gas exploration, despite dwindling reserves. This policy has led to expectations of increased energy costs, compelling the country to import liquefied natural gas (LNG), which is substantially more expensive than domestic sources. The state oil company, Ecopetrol, is attempting to address this shortfall by restarting previously suspended projects and increasing output from smaller fields. Nonetheless, projections indicate a widening gap between gas supply and demand, potentially impacting the competitiveness of Colombian industries.
Coal
Colombia's coal output has increased consistently from 4 million tons in 1981 to 65.6 million tons in 2006, when it contributed 1.4 percent of the world's coal production. In 2006 Colombia accounted for 81 percent of the total coal production in Central and South America. Furthermore, 94 percent of Colombia's coal is of very good quality and is classified as hard, with high heat-generating capacity. Coal has been Colombia's second-largest export since 2001.
The largest coal mines—and the ones that generate the most exports—are located in the north of the country, in the departments of La Guajira and Cesar. Cerrejón is considered to be one of the largest open-pit coal mines in the world. The 2008 coal production in Cerrejon was calculated in 31.2 million tons. There are also smaller coal mines scattered throughout the rest of the nation. +Coal production 2011-2021 (Exajoules)201120122013201420152016201720182019202020212.472.582.472.572.492.622.632.482.451.501.71 Since 2000 government participation in the production of coal has been decreasing, and there has been a shift to private domestic and foreign investors. Major changes have occurred in the institutional framework of the coal industry in recent years. In particular, in 2000 the government sold the stakes that Colombia Coal (Carbocol), a state-owned company, had in Cerrejón, and the new mining code introduced in 2001 led the government to concentrate on its role as regulator through the Ministry of Mines and Energy.
In 2020, Colombia had 5 trillion short tons of proved coal reserves, mostly bituminous coal, making it the second-largest amount in South America behind Brazil. Colombia produced 54 million short tons (MMst) of coal in 2020, with 9 MMst consumed domestically. However, coal production fell by 42% in 2020 due to the COVID-19 pandemic and a 91-day strike at a major mine in the north of the country. Most of the coal produced in Colombia is exported, making it the fourth-largest coal exporter in the world in 2020, after Australia, Indonesia, and Russia. Coal was the country's second-largest export commodity by value, after oil and petroleum products. Colombia exported 75 MMst of coal in 2020, primarily to Europe and Latin America. In the same year, Colombia was the largest source of U.S. coal imports, accounting for 71% of total U.S. coal imports, or about 6.1 MMst.
In 2021, Colombia was South America’s largest coal producer and the second-largest producer of petroleum and other liquids, after Brazil. The country is also a significant oil exporter; in 2021, it was the fifth-largest crude oil exporter to the United States. Despite being a major coal producer, Colombia uses very little coal domestically, relying mainly on hydropower for its electricity needs and exporting most of its coal production.
Gold
The production of gold during 2008 was calculated at , with an increase of 34.2% with respect to the previous year.Investment opportunities in Colombian mining industry 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.
Silver Silver mining is common in Colombia. One project is Outcrop Silver, whose Santa Ana project covers a significant part of the Mariquita District, where mining records date back to at least 1585.
Platinum
Copper Copper is a growing mining industry in Colombia. There are many new projects that aim to give Colombia the ability to mine more copper. Currently, there is only one company in Colombia that mines for copper.
Nickel The Cerro Matoso nickel mine, located in Montelíbano, Córdoba in northern Colombia, combines a lateritic nickel ore deposit with a low cost ferronickel smelter. It produces an average of 52,000 tons of nickel/year, which places this mine in the second place of nickel producers worldwide. Cerromatoso is currently owned by BHP. Disagreement among the direction and the trade union workers, with frequent strikes produced heavy losses during 2008
Halite
Halite was explored by the Precolumbian cultures such as the Muisca, as an important trade product.Cardale de Schrimpff, Marianne: Boletín Museo del Oro , Banco de la República, Colombia , No. 1, enero-abril de 1978, p. 39-41 Early halite mining is dated about 5th century BC. The traditional halite mining was described by Alexander von Humboldt during his visit to Zipaquira in 1801."Memoria razonada de las salinas de Zipaquirá", Alexander von Humboldt, Ed. Epígrafe, con el respaldo de Colciencias, referenciado por Fundación Editorial Epígrafe , Colombia, 2003 Nowadays, the Zipaquirá halite mine contains the Salt Cathedral of Zipaquirá, entirely hand-carved in halite, including the religious icons, ornaments and architectural details; the Salt Park and the national mineralogy museum.
Gemstones