Mining risk assessment for new country entry into Colombia

We worked with an international mining client to help them better understand the above-ground risks associated with the potential development of exploration interests in Colombia.

• Challenge

  The client wished to evaluate its potential entry into Colombia – in the form of an in-country exploration office or a partnership with a local junior. This was with the aim of identifying a new copper deposit to develop. The client needed to better understand related above-ground risks in specific target regions, linked to regulation, social dynamics, the operating environment and – importantly – security.

• Solution

  We prepared an assessment focused on: Law (permitting, elections, judicial activism, cadastre, etc), tax (tax burden, policy shifts, etc), operational issues (permitting, community ‘vetoes’, paramos, etc), social aspects (including ASM, water disputes, social conflict etc) and security (peace deal, criminality, etc). We also provided extensive sub-national mapping.

• Outcome

  The assessment highlighted key issues in the regions of interest including: Ongoing insecurity challenges linked to non-FARC armed groups, weak regulatory and permitting capacity, uncertainty around indigenous consultation processes and consent, land access challenges and security and human rights. The client used the analysis to inform their final decision.