Legal insecurity reduces FDI in the Colombian mining sector

Legal uncertainty affected FDI in the Colombian mining sector

In Colombia, the legal uncertainty affected half of the expected FDI (estimated - USD 1.5 Billion, actual- USD 800 million) in the mining sector comprising coal and gold.

Major concerns of foreign entrepreneurs was related to popular consultations and prior consultations. This disproportionate increase in (popular) consultations is creating a negative impact on investor confidence to invest in Colombia. This has prompted Colombian Mining Association (ACM) to resolve the issues and redefine the rules of the game for minig as well as energy miner and others sectors facing this problem.

For instance, as much as one million ounces of annual production of gold was affected in relation to one mining project as a result of popular consultations.

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