Zijin Mining Group, China’s state-owned mining giant, is embroiled in a fierce battle against local armed groups and illegal miners in Colombia’s gold-rich Antioquia region, specifically at its Buriticá mine. Acquired in late 2019 from Canada’s Continental Gold for USD $1 billion, the mine holds one of South America’s largest gold deposits. However, human adversaries have quickly emerged as the biggest obstacle to Zijin’s operations.
Illegal mining activities, fueled by the Clan del Golfo drug cartel, have posed significant challenges. These miners, often supported by the cartel, have infiltrated the mine’s operations through a complex network of underground tunnels. The theft has been staggering; over 3.2 tons of gold worth around USD $200 million was stolen in just one year, amounting to 38% of the mine’s total production.
The criminal network behind the illegal mining operation is highly organized, with miners from Colombia and Venezuela earning up to USD $5,000 per month in unauthorized tunnels. The Clan del Golfo takes a substantial cut of these profits, undermining Zijin’s legitimate business model.
Beyond financial losses, the conflict has escalated into severe security concerns. Armed attackers have targeted workers, set vehicles on fire, and used explosives to damage or obstruct Zijin’s operations. Investigations have directly linked the Clan del Golfo to these violent incidents.
Frustrated with the lack of security, Zijin Mining has filed an arbitration case with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) to seek compensation for inadequate protection from the Colombian government. Additionally, the company has filed a USD $430 million lawsuit, alleging that authorities failed to safeguard its investment and allowed illegal miners to operate without consequences.
Local officials argue that the resources needed to combat illegal mining are insufficient and warn that a crackdown could lead to widespread violence. Meanwhile, Colombia’s President Gustavo Petro has introduced reforms aimed at transitioning to more sustainable mining practices, further complicating Zijin’s operations. These reforms have raised concerns about potential monopolization by state-owned companies, adding another layer of complexity to the company’s operations.
The illegal mining activities also have negative social and environmental impacts on the local community of Buriticá. Mercury contamination in waterways and growing social instability are two of the major consequences as the community becomes caught between the competing interests of Zijin’s legal operations and criminal elements.
Zijin’s struggle highlights the significant risks and challenges faced by mining operations in regions with severe security concerns, and a senior Zijin security official acknowledged that the company is “losing the war” against illegal mining, underscoring the gravity of the issue.
