Colombia to launch May copper auction, aiming to substitute imports

Colombia’s government will launch an auction in May for copper mining projects, a senior sector official said on Wednesday, part of a push to meet local demand for the industrial metal while easing dependence on foreign supplies.

The announcement was made by Alvaro Pardo, president of the government’s National Mining Agency, at a business event in the Caribbean city of Cartagena.

Colombia produces commodities including oil and coal, but lags far behind regional peers Chile and Peru in output of the red metal, valued for its ability to conduct electricity in cables as well as in construction and manufacturing.

The auction will offer up a total of 17 exploration and production blocks located in Antioquia, Cesar and La Guajira departments, said Pardo.

He said more copper is needed to address growing demand for the metal in Colombia, including for green energy projects. Pardo noted that the high rate of local theft of copper telephone cables also pushes up demand.

“We want to replace imports and put an end to copper theft and be able to bring copper to all Colombian industrialists who require it, especially for the energy transition,” he added.

Last year, companies submitted 293 applications to mine copper, gold, and other metals, surpassing the number of applications for coal projects.

“There are many offers coming in, especially for strategic minerals, including copper,” said Pardo.

The mining official also noted that between March and April, the results of a feasibility study to build a steel mill in the South American country will be known, but without mentioning the company that would handle it.

(By Nelson Bocanegra; Editing by David Alire Garcia and David Gregorio)