Latest News

Colombia will launch a copper auction in May to replace imports

Colombia will launch a copper auction in May to replace imports

A senior official in the sector said that the government of Colombia will hold an auction for copper mining projects in May. The auction is part of an effort to meet local demands for industrial metals while reducing dependence on foreign suppliers.

Alvaro Pardo was the president of the National Mining Agency of the Government. He made the announcement at an event held in Cartagena, a Caribbean city.

Colombia produces oil, coal and other commodities, but it lags behind its regional rivals Chile and Peru when it comes to the production of red metal. This metal is valued for its ability conduct electricity, which can be used in cables, construction, and manufacturing.

Pardo said that the auction will include 17 exploration and production areas located in Antioquia and Cesar departments.

He stated that more copper was needed to meet the growing demand in Colombia for metal, which includes green energy projects. Pardo said that local thefts of copper phone cables are also driving up demand.

He added, "We would like to replace imported copper and stop copper theft. We also want to be able bring copper to all Colombian industry that needs it. This is especially important for the energy transformation."

Companies submitted 293 mining applications last year for copper, gold and other metals. This number was higher than the applications received for coal projects.

Pardo said that there are numerous offers, particularly for strategic minerals such as copper.

The official noted that the results of the feasibility study for the construction of a steel plant in South America will be available between March and the end April. However, he did not mention the name or company responsible for the project. (Reporting and editing by Nelson Bocanegra, David Alire Garcia and David Gregorio).

(source: Reuters)