The challenges to secure more foreign investment for mining

The challenges to secure more foreign investment for mining

This week the Mining Guild of the country carries out its annual congress in the city of Cartagena.

Last year’s mining GDP recorded a growth of 4.7%. “After the financial sector, it was the second most increased activity in the country’s economy.”


This statement by Santiago Ángel Urdinola, President of the Colombian Mining Association (ACM), highlights it because he insists that the sector closed the 2016 with positive macro figures.


The guild spokesperson adds that the results of the sector  are subject on how the figures are looked at:  “The Colombian economy grew to 2% and mining to 4.7%, there is no doubt that our sector is a puller,” explains the president of this industry, whose annual congress will be held this week in the city of Cartagena.


By way of synthesis, Ángel Urdinola points out that the growth of the mining activity was presented by a change of trend that was the one that helped that the mining figures close with positive numbers. Moreover, because the companies in the sector strove to increase production, which led to an increase in volume for minerals such as coal, gold, emeralds and copper. “The operation behaved adequately against the rise in the value of commodities worldwide,” says the president of the ACM, stating that for this reason in the second semester of 2016 the extraction was high.


Market challenges


With respect to 2017, the trade union leader does not hesitate to point out that the bet is that the sector of the country record a growth of the mining GDP by 5%.


“If conditions are maintained, Colombia’s mining activity can reach this percentage.” In addition, it should be noted that the projection for the country is that it will grow to 2%, “he says.


He clarified that this year started a complex for mining operations in the country, but that, over the months the panorama has been changing.


“Again we would be the puller of the economy.” And we will arrive at the end of the current presidential term considered again as the mining locomotive of the country, predicts the spokesman of this sector.


With the growth of the sector, the President of the ACM insists that it continues to bet on the increase of the exports to meet a goal of 20%.


But the main challenge for the leader is to return to securing foreign investment in mining. “The big goal is to increase the arrival of capital to strengthen the operation.”


He explains that in order to bring new capitals, the environment conditions that investors are looking for must be given, “mining is measured by investment attractiveness, and Colombia in the context of international mining capitalization is in the medium interest range.”


In the continent, countries such as Canada, the United States and Mexico have in medium-high and high interest. In addition, Brazil, Peru and Chile are also above Colombia. Only Ecuador is on the same level.


“In the range of mining competitiveness, Colombia saves it that in the geological issue is after Peru.” That is to say, it is the second most attractive country in matters of wealth that rests in the subsoil, says Ángel Urdinola.


Clear game Rules


Although, it reiterates that it should be improved on the issue of political perception, when it concerns certainty and legal security.


“There are two very powerful tools in the hands of the government and that are already in the law.” They are the works by taxes, which as public policy has been successfully applied in Peru. So the mining industry was able to approach the territory of influence, he says.


The second tool referred to by the President of the ACM has to do with the reform of the royalties that are being discussed in Congress and that is necessary to reconsider what kind of resources will be receiving the mineral-producing regions.


Finally, he notes that tax refund certificates (CERT) should be regulated as an incentive to increase production and exploration, “It is a very good mechanism to attract investment.”


Ángel Urdinola also stresses that on the subject of legal certainty, in addition to regulating previous consultations, the popular consultations should be reviewed, because they are affecting the country’s operation and confidence for the investor.

Originally posted in Portafolio

Original Article: 👉 Here

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