'La Jagua' and 'Calenturitas' mines up for bid in new mining round

‘La Jagua’ and ‘Calenturitas’ mines up for bid in new mining round

The answer to what could happen with the operation of the mining titles that Prodeco (former subsidiary of Glencore in Colombia) returned to the Nation was left on the table in recent days.

(Improves the image of mining in front of Colombians).

The reason, mines’The Jagua’ and Calenturitas’, that are part of the coal complex and that is located in the department of Cesar, will be designated as Strategic Mining Areas (AEM), to offer them in the mining round processes in the coming weeks.

“Both mines are ready to restart production. For this reason, they will be offered in the next mining round, more so at a time when several European countries are once again contacting each other to buy Colombian coal,” explained Diego Mesa, Minister of Mines and Energy.

(They warn about the shortage of coal for thermal generation).

The official stressed that the attractiveness of ‘La Jagua’ and ‘Calenturitas’, that both mines have the environmental license and does not depend directly on the company“because the Environmental Impact Study (EIA) does not have to be managed before the Anla, because it is already granted to the project”.

Mesa added that for the offer of the two coal titles, a “competitive call will be opened with rules similar to the AEM rounds that were made for copper and phosphates, and that are projected for gold.”

The process to designate ‘La Jagua’ and ‘Calenturitas’ in the AEM offer is already advanced, to the point that last Friday, March 11, the National Mining Agency (ANM) held a training workshop for mining companies that are interested in participating in the public contest.

At the meeting, not only was an introduction to what the Qualification Process is for extractive companies interested in coal production, but also two presentations were made, one on legal requirements and the other on technical terms of reference, for companies In addition, the video of ‘Anna Minería’, the new mining cadastre, was presented, and the event ended with a question and answer session.
“The process will open in the next few days, and the schedule that is being worked on is to be able to award the two mines before the end of this administration”, stressed Minister Mesa.

It should be remembered that the ‘La Jagua’ and ‘Calenturitas’ mines were part of the Prodeco operation, and that in February 2021 the process of returning their mining titles to Colombia through the ANM began.

Through a statement, the then subsidiary of the Swiss multinational Glencore, highlighted that the return is a consequence of the crisis that encompasses the sector in the country (at that time), to which the pandemic was added, and that led to a economically unfeasible operation.

In December 2020, the ANM denied Prodeco a request to suspend its operations at the ‘La Jagua’ and ‘Calenturitas’ mines. From there, the mining company began a review of its operating costsaffected by expectations of falling prices in the coal market and what was happening at that time.

“The decision to renounce the mining contracts has not been taken lightly and is a disappointing result,” said the company, reiterating that “the two mines are entering a maintenance stage until the formal process resulting from the resignation of the titles have culminated”.

As for the Puerto Nuevo export port, the former Glencore subsidiary made it clear that “it will continue to operate in line with its public service obligations.”
During 30 years of mining activity, Prodeco has invested more than US$3,000 million, and has paid a similar figure in royalties and taxes. In addition, it generated 1,200 direct jobs.


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