Petro’s Government and Zijin: between Mining Reforms and Legal Disputes

Photo: Fotografía oficial de la Presidencia de Colombia Flickr

The Chinese mining company Zijin Continental Gold, owner of one of Colombia’s largest gold mines, is facing a struggle on two fronts. On one side, it is fighting against informal miners who are operating illegally within its concession; on the other, it is pursuing a lawsuit against the Colombian government at the International Centre for Settlement of Investment Disputes (ICSID), citing a lack of security guarantees.

The situation at the Buriticá mine in Antioquia is tense, with violent incidents attributed to informal miners and the Gulf Clan, which controls much of the illegal mining in the region. Zijin reports that it has lost control of over 60% of its tunnels, with incidents including explosions and gunfire targeting its facilities. However, representatives of the miners deny responsibility for these attacks, noting that access to Zijin’s tunnels is restricted and guarded by the military.

Meanwhile, the government of Gustavo Petro has promoted reforms to the mining code and proposed the creation of a state-owned company, Ecominerales, which has raised concerns among investors due to potential industry monopolization and legal instability. The Colombian Mining Association warns that these changes could impact acquired rights and reduce private investments.

Zijin’s lawsuit at ICSID, filed after a deadly attack at its mine, seeks $430 million in damages for Colombia’s failure to provide investment protection. The company argues that, despite investing one billion dollars in the mine, the Colombian government has not ensured its security or legal stability.

Main Source: (Spanish)

Conflictos, grupos criminales y demandas en la mina de oro de Zijin en Colombia – Dialogue Earth

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Chinese multinational sues Colombia for lack of protection at gold mine

Canada Approves Sale of Peru’s La Arena Mine to Zijin Mining

External Links: (Spanish)

Minera china demandó al Estado colombiano por la guerra de trincheras que se libra en mina de Antioquia – El Colombiano