Medellín, Colombia – Zijin Mining Group, the parent company of Continental Gold, has initiated legal action against the Colombian government through the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank, citing claims of negligence.
The decision to sue follows a series of incidents at the Buriticá gold mine in north-western Colombia, culminating in a significant terrorist attack last year, according to Ciar Global, an arbitration magazine focused on the Ibero-American community.
Reports from Colombian broadcaster Caracol Radio attribute the heightened violence at the site to the Clan del Golfo neo-paramilitary group, which has allegedly orchestrated coordinated assaults impacting both mine infrastructure and personnel.
Most recently, on May 19, 2024, armed illegal miners reportedly attempted to forcefully access the mine, utilizing firearms and explosives. During the incident, rumors circulated about a group of workers potentially trapped underground.
In response to the events, Continental Gold expressed dismay, questioning the motives behind the illegal miners’ actions and highlighting concerns over their intensified assaults on security personnel.
The Buriticá mine stands as Colombia’s largest underground gold operation, capable of processing up to 3,000 tons of gold daily, as reported by Caracol Radio.
Zijin Mining Group acquired Continental Gold, originally a Toronto-based entity, in 2020, securing the rights to exploit the Buriticá mine, Reuters confirmed. Despite this ownership, illegal mining activities, controlled by the Clan del Golfo, persist in the area, operating through numerous tunnels and clandestine processing sites.
Local communities are apprehensive about the escalating violence associated with these illicit operations, compounded by environmental concerns stemming from the use of mercury in gold extraction processes.
In response to mounting pressures, the Colombian Attorney General’s Office has launched investigations into state officials regarding potential lapses in providing adequate protection to Zijin-Continental Gold’s workforce.
“The company had reportedly sought protection from both national and local authorities multiple times to ensure the safety of its employees and the uninterrupted operation of its underground gold extraction activities,” the Attorney General’s Office stated on July 18.
The ICSID has acknowledged receipt of the lawsuit, although specifics regarding the timeline for legal proceedings remain uncertain at this stage.
For further developments on this case, stakeholders await updates from the International Centre for Settlement of Investment Disputes.