Colombia looks to diversify into phosphate

Colombia will tender a phosphate exploration block in September as part of an effort to attract more mining investment and diversify away from coal.

Government mining agency ANM will invite international companies to submit bids for nine areas, including copper-bearing areas, with pre-qualification beginning on 9 February.

The phosphate block is located in the southeastern department of Huila.

The blocks will be awarded based on technical knowledge, financial strength and good environmental practices, deputy mining minister Sandra Sandoval said.

"The phosphate area will be awarded during the third quarter. We are no longer awarding mining areas on a first-come first-serve basis, but to companies that prove technical, economic and relationship capabilities with communities," Sandoval told reporters last week.

Phosphate and molybdenum were discovered in copper explorations, and Colombia has high expectations that phosphate will diversify its mining portfolio, along with copper, gold, silver and molybdenum, and reduce its exposure to coal.

Colombia is the world's fifth-largest coal exporter but mining suspensions, plummeting international demand and labor strife cut Colombian coal production to a 16-year low in 2020.

By Diana Delgado