Wednesday, March 21, 2018

Become part of our community

Written by March 17 2018 0

Medellin-based gold miner Mineros SA announced March 16 that its full-year 2017 net profits in Colombia rose 16% year-on-year, to COP$114.7 billion (US$40 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) in Colombia hit COP$187.9 billion (US$65.8 million), or 48% of sales.

Corporate-wide, consolidated net income rose 32% year-on-year, to COP$117 billion (US$41 million), while consolidated EBITDA rose 17%, to COP$283 billion (US$99 million).

Total gold output rose 8.7% year-on-year, to 208,054 ounces, while average sale price rose 4.1%, to US$1,250/ounce.

Commenting on the results, Mineros noted that world gold prices at year-end 2017 hit US$1,302 per ounce, up 13% year-on-year; average 2017 gold prices were US$1,257.

Relatively strong gold prices came in reaction to falling values of the U.S. dollar along with international political troubles, including threats of war between the USA and North Korea, the company noted.

Meanwhile, world gold production last year reached a new record of 3,268.7 tons, “marginally higher than that observed in 2016 (3,263 tons),” Mineros noted.

“From the point of view of demand, the global manufacture of jewelry increased by 4% to 2,135.5 tons,” according to Mineros.

“This is the first annual increase in this item since 2013, when the demand for gold for investment fell 23%, passing from 1,595.5 tons in 2016 to 1,231.9 tons in 2017.

“Central banks continued to increase their gold reserves for the eighth consecutive year, but at a slower pace than the one observed the previous year, buying 371.4 tons compared to the 389.8 tons purchased in 2016.

“The demand for gold for the technology industry and for dentistry increased 3% compared to that observed in 2016, going from 323.4 to 332.8 tons. These changes generated a net reduction in demand close to 7%, going from 4,378.20 tons in 2016 to 4,071.7 tons in 2017,” Mineros noted.

In Colombia, Mineros SA’s mainly alluvial gold production remained flat year-on-year, at 89,709 ounces. Underground gold production in Colombia fell 14% year-on-year, to 13,664 ounces.

In Nicaragua, production at its Hemco subsidiary rose 22% year-on-year, to 104,681 ounces of gold equivalent, according to the company. Mineros added that in 2018, the company will concentrate greenfield exploration mainly in Nicaragua.

Socially Responsible Mining

Meanwhile, Mineros continues to support environmentally and socially responsible mining in Colombia – in part by eliminating toxic mercury from is mainly alluvial operations, in contrast to criminal and reckless mining practiced by others.

Among Mineros social-environmental projects in 2017:

1.A “business strengthening” program, which last year provided financial credits and consulting to 25 entrepreneurial companies, “aimed at developing skills that not only help them to be better entrepreneurs but also better citizens.”

2. Apicultural production project: This program – supported in part by the U.S. Agency for International Development’s “Legal Gold” program -- continues to grow, with 100 families associated to the ASAPIBAS (Association of Beekeepers of the Lower Cauca and Southern Bolivar) cooperative in 20 villages near El Bagre, Nechí, Zaragoza, Anorí and Caucasia, Antioquia. These cooperatives produced 13 tons of honey last year, netting close to COP$271 million (US$95,000) in supplemental income.

These families also recently founded three laboratories for the production of bee-biological nuclei, “in order to continue growing and populating their apicultural units. Also, 120 new hectares were reforested in order to increase the floral supply available, while also serving as an environmental contribution for the region, rehabilitating areas [wrecked] by informal mining,” the company added.

3. Business and human rights project with the United Nations: “We continue supporting the Office of the United Nations High Commissioner for Human Rights in actions for the construction of peace and citizen coexistence” in mining areas, Mineros noted.

This project “supported the training of 50 members of the Committees of Coexistence of El Bagre that participate in the formulation of development programs with a territorial approach, while six education and recreation campaigns were carried out to generate bonds of trust, confidence and coexistence in neighborhoods of El Bagre and Zaragoza.”

4. Mining legalization: In 2017, Mineros provided technical-assistance loans to the informal miner group EMIJOM (Empresa de Mineros de Jobo Medio-Emijom) "for the improvement of ore beneficiation processes, in order to increase gold recovery and avoid the use of mercury."

5. Wetlands program: During 2017, Mineros helped clean 14 hectares of water and water-supply access pipes in natural marshes, working jointly with the communities of Sabalito Sinaí, Guamo-Guachí, El Pital, San Pedro and La Esperanza.

“In the same way, the community of Puerto Gaitán worked on cleaning the waters of the La Esperanza swamp,” with Mineros payments for this project generating extra income for local workers while also boosting environmental protection, the company added.

6. Conservation of river turtles: “In 2017, communities from the municipalities of Nechí, Zaragoza, Caucasia and El Bagre participated in nine conservation-center operations, achieving the release of 1,300 individuals of this species,” according to Mineros.

7. Fish farming and repopulation program: “Fulfilling the environmental management plan, during 2017 the repopulation of the Bocachico species was continued -- considered of great importance in the diet of the riverside populations and also because Bocachico is classified as an endangered species. With the participation of the fishing communities of Nechí and the National Authority of Aquaculture and Fisheries (AUNAP), we introduced 500,000 Bocachico fingerlings in strategic wetlands including La Taburetera, El Sapo, Corrales and La Esperanza,” according to Mineros.

8. Reforestation program: “In 2017, we planted about 120,000 trees of different native species on 60.5 hectares of land left behind after the alluvial operation (involving hydraulic landfills),” the company noted.

9. Agroforestry plots: This program added 48 more plots in 2017, “all built in the recovery zones left by the [alluvial] production units. In agroforestry systems, there are about 750 hectares [of reforested plots], where honey is produced, along with yam, yucca, banana, corn, rice, fruit and vegetables in home gardens. These activities are complemented with artisanal fishing, poultry, pigs, rams and cattle,” according to Mineros.

10. Rubber plantations: As of 2017, “the population of rubber trees planted amounted to 450,000 trees in about 1,000 hectares. Of these, the first 28,000 trees entered latex production,” the company added.

Written by March 16 2018 0

Medellin-based recycled plastics textile manufacturing specialist Enka Colombia announced March 15 that its full-year 2017 net profit fell to COP$1.7 billion (US$595,000), down from COP$10.6 billion (US$3.7 million) in 2016.

Colombia’s weak economy in 2017 combined with a 25% drop in domestic demand for textiles hurt Enka sales and profits -- but growing exports helped to compensate for domestic declines, according to the company.

Operating revenues rose 10% year-on-year, to COP$357 billion (US$125 million), once excluding the negative impact of sales terminations in economically wrecked “socialist” Venezuela.

Exports (excluding Venezuela) now account for 48% of Enka sales, up from 41% in 2016, according to the company. Sales to Brazil rose 29% year-on-year, while sales of filament for the fisheries industries in Perú, Chile and Spain also rose, according to the company.

México and the USA also boosted purchases of certain Enka fibers for production of tires and specialty clothing, the company added.

Following US$100 million invested in high technology, Enka is now the leading recycler of PET (polyethylene terephthalate) plastic from plastic bottles -- turning this waste material into novel textiles for clothing as well as specialty filament for tire manufacture.

“Our company is totally immersed in the global economy, taking raw materials from Asia, Europe and the Americas and then transforming and distributing products to clients in 19 countries,” according to Enka.

Today, 51% of its products are made from recycled plastics. But this is about to grow thanks to further investments in machinery that will convert not just plastic bottles but also plastic caps and labels into textile material, according to Enka.

This new process will start-up in second-half 2018, producing a recycled resin of “excellent quality and contributing to the sustainability of the plastic sector in Colombia,” according to the company.

Enka now has two PET recycling plants with capacity to process 34,000 tonnes per year; its national recovery system also is capable of collecting and reprocessing more than 1 billion PET bottles every year, according to the company.

Growing environmental consciousness around the world is helping to boost this business, further spurred by Organization for Economic Cooperation and Development (OECD) initiatives that have been embraced by the Colombian government.

Thanks to advanced technology investments, product innovations and productivity gains, “we have developed a wide portfolio of differentiated products that meet the needs of the most profitable market niches, thus reducing our exposure to Asian commodity producers,” according to Enka.

Novel textile materials generated COP$246 billion (US$86 million) in sales last year, up 4% year-on-year, accounting for 69% of total sales.

Meanwhile, Enka’s virgin PET sales would have been even greater in 2017 except for the situation in Venezuela, the company added.

Industrial thread 2017 sales grew 8% by volume and 18% by revenues year-on-year, with 85% of those sales going to export markets.

While filament sales were hurt by the plunge in Colombian textile production, filament sales to Brazil and Argentina helped compensate. As a result, filament sales showed net drop of 2% year-on-year, while Colombia sales dropped from 22% of sales in 2016 to just 15% of sales in 2017.

Thanks to investments in “EkoPET” technology, industrial thread modernization and self-generation of electric power, Enka added that it has boosted earnings before interest, taxes, depreciation and amortization (EBITDA) by 80% over the past eight years.

For 2017, EBITA came-in at COP$23 billion (US$8 million), up 4.7% year-on-year when excluding Venezuela..

Gains in cash-flow also cut financial debt, so that by year-end 2017, Enka’s debt ratio fell to 1.6-times EBITDA, according to the company.

Written by March 16 2018 0

The Chamber of Commerce of Medellin for Antioquia (CCMA) projects that Antioquia likely will see 3% growth in gross domestic product (“PIB” in Spanish initials) this year, up from 2.2% last year.

As noted in a March 15 bulletin from Confecamaras (the Colombian national association of chambers of commerce), Antioquia out-performed Colombia nationally last year, with 2.2% GDP growth locally versus just 1.8% nationally.

As for 2018, the Medellin chamber foresees 3% GDP local growth thanks to “lower interest rates, growth in industrial exports, better prospects for private investment and public spending,” the report noted.

In a related report posted to the Medellin chamber’s web-site (, CCMA noted that exports from Antioquia grew 3.3% last year – to US$4.478 billion. Gold, fruits (especially bananas), coffee, vehicles, flowers, clothing, plastics, machinery and essential oils were the leading export products.

Meanwhile, copper exports jumped by 126% year-on-year --mainly to Spain and Singapore – while textile exports grew 15%, mainly to Brazil, Ecuador and Mexico, according to CCMA.

While local government spending grew 4% here, up from 2.4% in 2016, “industry, commerce and construction showed lower growth because of slow growth in internal demand and the negative impact of the [2017] tax reform, affecting personal consumption,” the CCMA report notes.

Investment in private corporations last year grew 18.6% year-on-year, by COP$1.01 trillion (US$353 million), with management consulting, road transport, metal-mining, machinery installation and maintenance, lumber and fisheries, health-care, and telecommunications taking leadership among all investment categories, according to the report.

However, industrial production in metro Medellin declined by 4.6% year-on-year through September 2017, while local industrial energy demand fell 7.9%, the report noted. The biggest declines were in textiles, iron works, foundries and clothing manufacture, according to CCMA.

While 139 companies relocated to Medellin from elsewhere in Colombia (mainly Bogota and Barranquilla) during 2017, 133 other companies decided to leave Medellin, mainly going to Bogota, Cali, Barranquilla and Cartagena, the report found.

Factors attracting companies to Medellin include relatively favorable access to clients and suppliers, the existence of local companies providing required services and information, relatively good urban and social infrastructure, qualified labor, relatively efficient public administration, and the existence of research centers (such as universities), the CCMA report found.

However, negative factors cited by companies included relative costs of public services, relatively high land costs, lack of local natural-resources, labor costs, lack of fiscal incentives and some concerns about security.

Written by March 14 2018 0

Private real estate development fund Pactia – administered by Medellin-based Fiduciaria Bancolombia – on March 14 announced that full-year 2017 net income jumped 41.8% year-on-year, hitting COP$132 billion (US$46 million).

Gross income also rose 25% year-on-year, to COP$224 billion (US$78.7 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$107 billion (US$37.6 million), according to the company.

Year-on-year results aren’t fully comparable as 2017 was the first full year in operation of Pactia’s “Fondo de Capital Privado” (private capital fund), the company noted.

Pactia has real-estate investments in Colombia, Panama and the U.S.

During 2017, Pactia expanded its U.S. market holdings, taking a 45% stake in a portfolio of 14 commercial properties in Virginia, in which it invested COP$115 billion (US$40 million). Pactia also bought a commercial lot in Miami for a future mixed-use building project, according to the company.

As for 2018 plans, Pactia aims to invest an estimated COP$400 billion (US$140 million) this year in new projects, according to the company.

“We closed the year [2017] with very good results and we have the satisfaction of achieving our strategic goal of internationalization and diversification of our real-estate portfolio,” added Pactia president Nicolas Jaramillo.

Among Pactia’s recent flagship projects: the “Gran Plaza” commercial center in Bogota and another “Gran Plaza” in Bosa, Colombia.

The company added that it has obtained licenses to develop a new distribution center for Colgate Palmolive in Valle del Cauca (near Cali), as well as a new Hilton Hotel adjacent to the Corferias convention center in Bogota.

Estimated value of the current backlog of pending projects now totals COP$1 trillion (US$351 million), which when completed would yield another 281,000 square meters of leased space, according to the company.

Written by March 08 2018 0

U.S.-based global power tools, appliances and security-systems manufacturer Stanley Black & Decker just decided to make Medellin its new Americas-region financial services unit for commercial customers -- creating 200 new jobs here over the next 12 months.

According to Medellin’s business-development agency (Agencia de Cooperación e Inversión de Medellín y el Área Metropolitana, ACI), Stanley Black & Decker (SBD) now has some 50,000 global employees with annual sales now topping US$12 billion.

According to ACI, the company chose Medellin for the new financial-services offices “because of its solid business environment and its capacity to provide high-quality commercial services,” as well as the joint recruitment-and-collaboration efforts of ACI, Medellin’s high-tech “Ruta N” commercial landing space and Colombia’s “Procolombia” investment promotion agency.

SBD financial director Jamie Ritter added that “Medellin is a growing city, focused upon innovation and with a great quantity of talent, making it an attractive location for Stanley Black & Decker to develop a world-class center tied to strategic growth initiatives.”

Page 1 of 11


MEDELLÍN PHOTOS by Gabriel Buitrago (click to enlarge)


Volunteering February 20 2017 0
As the late North American philosopher A.B. Johnson once quipped, “mighty oaks from little acorns…

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago