Colombia opens tender for phosphate blocks

Colombia opened a tender to award four phosphate-prone blocks as part of a campaign to expand and diversify mining investment.

Blocks 6, 7, 8 and 10 are located in the central department of Boyacá and the southern department of Huila.

"Phosphoric rock is used for production of fertilizers, animal food and ceramics. We are seeing a significant increase in their prices . . . and local and international demand will keep increasing with very competitive prices," mines and energy minister Diego Mesa told Argus on the sidelines of today's launch.

Future phosphate production could be used at home and exported too, Mesa said, noting that domestic and international firms have shown interest in the areas.

Colombia currently produces 42,659t of phosphorus and the country imports fertilizers to supply local consumption. The top local supplier is Venezuela's distressed state-owned Monomeros.

The government has identified 3.36mn hectares of potential phosphate-producing acreage in five departments.

"This is the first round, but over time, we will be launching more and more phosphate areas," Colombian mining agency (ANM) president Juan Miguel Duran said today.

ANM will open bids on 22 November, with the possibility of counteroffers.

Only 761 hectares of phosphate areas are currently in production, ANM said.

Phosphate rock is processed to produce phosphorous, one of the three main nutrients most commonly used in fertilizers. Phosphate can also be turned into phosphoric acid, which is used in everything from food and cosmetics to animal feed and electronics.

Most of Colombia's mining industry is focused on coal. The government is promoting copper as well as gold and phosphates to re-position the sector.

By Diana Delgado