The government of Colombia is actively pursuing the expansion and diversification of its mining sector, with a particular focus on critical minerals like nickel, which is presently only extracted from Cerro Matoso. While the surging global demand for this essential mineral presents an attractive opportunity for Colombia’s economy, the potential benefits are accompanied by significant concerns. Environmental degradation, health risks for workers and local residents, and the prevalence of violence around Cerro Matoso cast a shadow over the potential gains.
The nickel landscape in Colombia
Cerro Matoso, located in the Cordoba department, serves as the epicenter of Colombia’s nickel mining operations. Commencing production in 1982, the mine boasts around two thousand employees and is among the world’s largest open-pit ferronickel mines. Presently holding reserves of nearly 300 kilotons of nickel, it’s set to produce 43.5 kilotons in 2023, reflecting a 4 percent increase from the previous year’s 41.7 kilotons, according to a late December 2022 report. Ricardo Gaviria, President of Cerro Matoso, expressed similar optimism in a September 2022 interview, forecasting production to exceed 45,000 tons in 2023. This places Colombia among the top ten nations with substantial nickel reserves.
Tomás González, an economist and director of Colombia’s Regional Center for Energy Studies (CREE), stressed the pivotal role of Cordoba in the country’s energy transition. He noted that nickel, a vital component for low-emission energy systems, is strategically located in Cordoba, warranting consideration beyond mere fossil fuels.
A vision for nickel mining’s future
Colombia’s government envisions establishing up to 30 new mining zones across the nation. The National Development Plan (PND) crafted by the Petro administration outlines objectives and strategies for the Ministry of Mining and Energy. This plan underscores an emphasis on environmentally responsible mining practices while promoting the exploration, extraction, and formal commercialization of strategic minerals, including copper, nickel, cobalt, and lithium.
Nickel is a prominent focus for the Colombian government, having secured its position as a strategic mineral. The intention to issue a new Mining Law (Ley Minera) is aimed at supporting small and medium mining enterprises, with a strong emphasis on critical minerals, including nickel. The American-Colombian Chamber of Commerce also champions nickel mining, citing the potential for synergy with the US’s drive towards green technologies and reduced inflation.
Diversification of nickel mining beyond Cerro Matoso is under exploration. Gaviria anticipates that a policy of peace initiated by President Gustavo Petro will enable exploration in regions such as Tarazá, Ituango, Nariño, and Cauca, where nickel reserves remain untapped.
A sustainable vision with challenges
Beyond its economic potential, Cerro Matoso is marred by criticism and controversy. While serving as a cornerstone of Colombia’s nickel industry, the mine’s operations have drawn censure from local communities, activists, and journalists due to their detrimental health and environmental effects.
Situated within an indigenous reserve, Cerro Matoso encroaches on the ancestral lands of the Zenu de l’Alto San Jorge people, exacerbating concerns about health issues among inhabitants.
While the mining company disputes claims of air pollution, reports persist of illness among locals and employees, possibly linked to released gases containing carcinogenic substances. Legal battles, initiated by owner South32, seek to counter allegations of environmental destruction and pollution. Furthermore, allegations circulate that the mine collaborates with criminal groups in exchange for operation permissions, resulting in threats and violence against those opposing its activities.
In October 2022, the murder of journalist Rafael Moreno underscored the dangers associated with investigating corruption related to the Cerro Matoso mine. Amidst these challenges, Colombia’s focus on mineral exploitation appears undeterred. The government’s commitment to a new development plan and proposed mining legislation signals the country’s dedication to mining expansion. Though the potential for increased nickel production brings economic promise, it is imperative not to overlook the environmental, health, and social ramifications that have plagued the industry thus far.
