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July 17, 2024July 17, 2024⌙ Colombia 🇨🇴

Chinese multinational sues Colombia for lack of protection at gold mine

Fundación Andrés Bello

Photo: Zijin Mining Group.

The Chinese mining company Zijin Mining Group has filed a lawsuit against the Colombian government alleging that the state has failed to provide sufficient security measures in the area of Buriticá, Antioquia, where the Chinese company operates the country’s largest gold mine. 

The Chinese company filed the lawsuit on July 12, following a series of violent attacks in and around the mine in recent years – acts that have been attributed to the Clan del Golfo, a Colombian armed group operating in the area.  

The lawsuit is the result of violent acts that have affected the infrastructure of the mine and its miners, due to the internal dispute that the Chinese company has with illegal mining in the area. In November 2023 there was an attack against the mine, which resulted in the death of two people and injured several, including police officers. 

The last recorded event was on May 19, 2024, when several informal miners attempted to take over the access ramp to the mine by force. During the incident, firearms and handmade explosives were allegedly used by the illegal miners. 

The lawsuit was filed through the general secretariat of the International Centre for Settlement of Investment Disputes (ICSID). The claim exposes the problems in the area caused by illegal mining that invades the private property of the Chinese company. 

The Chinese conglomerate blames the Colombian State for the lack of adoption of measures to guarantee the security of the investment and operation in the country, using statements from the community of Buriticá itself requesting prompt action and intervention from the national government in the area. 

The first step of the ICSID process is the consent to an expedited arbitration, which could take up to 30 days. This arbitration will conclude its decision between 470 and 530 days after the date of registration of the claim.   

The Buriticá gold mine is the largest in the country, with the capacity to process 3,000 tons of gold per day. The blockades in the area and its mobility affect the livelihoods of 1,500 workers and around 700 Buritequeños, according to a communiqué from the Chinese company. 

In 2020, Zijin Mining Group acquired 69% of Continental Gold, a Canadian company that owns the Buriticá mine, for a price of US$ 1 billion. Despite security concerns, this purchase was made for the exploitation rights to the mine, which is estimated to hold up to 300 tons of gold. However, the Clan del Golfo is also aware of this and may have thousands of illegal miners, whom they extort for the clandestinely mined gold.

Main source:

Multinacional china interpone demanda contra Colombia: culpa al Clan del Golfo – El Espectador (2024, 16 julio).

Other related sources:

Zijin Group demada a Colombia por falta de protección a proyecto minero en Antioquia – Caracol Radio (2024, 16 julio).

Minera Continental Gold Inicia Anunciado Arbitraje CIADI Contra Colombia – Ciar Global (2024, 16 julio).

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    La Fundación Andrés Bello – Centro de Investigación Chino Latinoamericano es una entidad sin fines de lucro, de carácter independiente, dedicada a la investigación y análisis de las relaciones internacionales entre la República Popular China y los países de América Latina y el Caribe.

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