Zijin Mining Photo: VCG

Chinese mining giant Zijin Mining Group said on Thursday that the gold mine it acquired in Colombia has suffered from theft by illegal mining groups, and the exact amount of loss is yet to be verified, but the overall security situation of the mine remains controllable and its gold production has continued to rise despite illegal mining activities. 

The statement came in response to media reports that a drug gang looted more than three tons of gold from Zijin Mining Group's mine in Colombia.       

Zijin Mining Group estimated that last year the company lost more than 3.2 tons of gold in its Columbia-based gold mine, worth around $200 million and equal to 38 percent of the mine's total production, the Wall Street Journal reported on Tuesday.

Illegal mining activities have long persisted around the gold mine, the company said in a statement sent to the Global Times, saying that Continental Gold signed a security agreement with Colombian authorities to safeguard the mine, following the acquisition by its parent company Zijin Mining in March 2020.

Since the second half of 2022, the surge in illegal mining incidents has been fueled by insufficient on-site law enforcement and police presence, according to the statement.

The company has continuously reported the situation to the local authorities, actively seeking assistance and condemning illegal mining activities through various channels. 

The company also filed an arbitration application with the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, seeking to resolve the matter of inadequate security protection. 

Due to historical reasons and site conditions, illegal mining groups controlled and stole high-grade ore from its shallower areas of the gold mine, resulting in losses, but the exact quantity of gold looted is yet to be verified, the statement said.  

With collaborative efforts from local police, security personnel, and project employees, the security situation of the mine, despite being impacted by illegal activities, remains controllable and its gold production has continued to rise, per the statement.

As of the third quarter of 2024, the Continental Gold company had already produced 7.5 tons of gold, reaching 87 percent of its annual target of 8.6 tons. The company has achieved good operational performance amid high gold prices, according to the statement.

On October 18, Zijin Mining Group released its third-quarter financial report showing that in the first three quarters this year, the company reported operating income of around 230.4 billion yuan ($31.8 billion), marking a year-on-year increase of 2.39 percent, according to media reports.

On May 17, 2023, local time in Colombia, a gold mine operated by Zijin Mining's Colombian subsidiary experienced a terrorist bombing, according to a statement on Zijin Mining's official website.

Global Times