Business 653
Gran Colombia Gold Hails Strike Settlement; Continental Gold Launches Ag Aid
Tuesday, 05 September 2017 11:18 Written by Roberto PeckhamToronto, Canada-based Gran Colombia Gold announced September 5 that a violent strike by illegal gold miners in the Antioquian municipalities of Segovia and Remedios is finally over – benefitting more than 2,500 legal miners affiliated with the company.
The 42-days-long strike resulted in several deaths, widespread vandalism and economic suffering for thousands of residents in the area.
“We are pleased to see the civil strike in Segovia and Remedios has been lifted and we can get back on track with our 2017 operating and capital plan,” said Gran Colombia CEO Lombardo Paredes.
“Through our commitment to economic development in Segovia and Remedios, we will incorporate additional small mining collectives into our contract mining model, which will allow continued operation of ancestral mining within our title in accordance with the government’s requirements for health, safety and environmental responsibility.
“Although our production in August [during the strike] was below normal, we continue to expect that we will meet our annual production guidance for 2017 of 150,000 to 160,000 ounces of gold,” Paredes added.
Over the next few months, Gran Colombia “will negotiate specific operating contracts with each of the mining collectives based on general terms agreed to last Friday [September 1] between the Ministry of Mines, the Governor of Antioquia, the Mayors of Segovia and Remedios, the Mesa Minera and the company,” according to the company.
“The monetary compensation under these new operating contracts will be established for each mining collective individually with the company retaining between 10% and 60% of the spot price for each ounce of gold produced. The contracts will also require that all ore is to be processed at the company’s Maria Dama plant,” according to Gran Colombia.
Illegal miners in the strike area have been dumping toxic mercury into the environment as well as invading legal claim areas run by responsible miners (some of which are multinationals). Violent criminal groups also sometimes ally with these illegal miners in return for extorsion payments.
Many illegal miners also objected to new government laws requiring permits and legalization, which will put a stop to mercury dumping. Others claim "ancestral" rights to mining -- even when such mining involves irresponsible invasion of legal mining operations that obey all environmental, tax and labor laws.
Continental Gold Launches ‘Future Harvest’
Meanwhile, fellow Toronto-based Continental Gold announced September 5 the launch of a “Future Harvest” program aiming to help mining families in western Antioquia diversify incomes and improve lives.
“Future Harvest is projected to directly benefit the communities of Buriticá, Santa Fe de Antioquia, Giraldo and Cañasgordas, which are all in the company’s direct area of influence,” according to the company.
“Continental Gold intends to contribute approximately US$370,000 of the total program investment of US$518,000,” according to the company.
The program involves 14 private and public entities “to advance the implementation of a self-sufficient sustainability strategy with productive agricultural business,” according to the company.
“The first seven business plans funded under Future Harvest include programs for cultivating coffee, plantains, poultry, garden produce, strawberries, as well as fish farming and fiber production.
“Each business plan was structured with the communities and local and regional institutions, taking into account local productive capacities, soil productivity and quality and other variables, while promoting efficient water resource management and the use of best agricultural practices to balance development with protecting ecosystems.
“Each business plan also features the development of an integrated rural program, ongoing training and the transfer of productive assets, as well as providing access to savings programs and support regarding consumption, which have been proven to result in significant and lasting improvements on the quality of life,” the company added.
Commenting on the program, Buriticá Mayor Humberto Castaño added: “Through responsible, legal and organized mining, we can generate income to transform our land. With Future Harvest, on the day mining operations finish, we can guarantee that there will be sustainable economic activity in the municipality.”
Medellin Industrial Production Drops 6.8% in First-Half 2017
Friday, 01 September 2017 15:50 Written by Roberto PeckhamThe latest report from Colombia’s national Departamento Administrativo Nacional de Estadística (DANE) shows that industrial production in metropolitan Medellin dropped 10% year-on-year in second quarter (2Q) 2017 and has fallen 6.8% through first-half (1H) 2017 (see chart, above).
A sharp drop in textiles output (down 25%) and a 19.8% drop in “other manufactured goods” production during 2Q 2017 largely explains the over-all decline, according to DANE’s regional statistical report on Colombian manufacturing.
Sales of manufactured goods in metro Medellin also dropped 8.5% in the latest quarter, while employment in manufacturing also dipped 3.4% year-on-year, according to the agency.
On the bright side, 2Q 2017 output of basic chemicals in metro Medellin rose 3% while “other chemicals" output rose 3.7% year-on-year, according to DANE.
In other key Colombian regions, 2Q 2017 manufacturing output dropped 8.9% year-on-year in Bogota, fell 4.4% in the Santander regions, and slipped 1.7% in the Cali-Yumbo region. However, output climbed 1.4% year-on-year in the Barranquilla-Cartagena-Santa Marta region and rose by a fractional 0.1% in the coffee region, according to DANE.
Compañía de Empaques Sees 1H 2017 Profits Drop
Thursday, 24 August 2017 14:30 Written by Roberto PeckhamMedellin-based Compañía de Empaques – makers of fibers for industrial, agricultural, construction and infrastructure sectors – announced this month that its first-half (1H) net profits fell to COP$1.96 billion (US$662,000), compared to COP$13.5 billion (US$4.5 million) in 1H 2016.
While sales rose year-on-year -- to COP$193 billion (US$65 million) in 1H 2017 versus COP$179 billion (US$60 million) in 1H 2016 -- cost of sales rose considerably, to COP$160 billion (US$54 million) in 1H 2017 versus COP$142 billion (US$48 million) in 1H 2016, according to the company.
Compañía de Empaques boasts 75 years of experience in manufacturing specialty fibers for packing and storage of materials as well as for reinforcing materials used in mining and construction.
Enka 1H 2017 Profits Fall Year-on-Year; Coltejer Losses Mount
Thursday, 24 August 2017 13:59 Written by Roberto PeckhamMedellin-based Enka de Colombia – producer of fibers and filaments including nylon and polyester - this month reported that its first-half (1H) 2017 net profits fell to COP$1.9 billion (US$641,000), down sharply from COP$9.3 billion (US$3 million ) in 1H 2016.
Sales also dropped year-on-year, to COP$84.8 billion (US$28.6 million) in 1H 2017, versus COP$92.5 billion (US$31 million) in 1H 2016.
The Enka plant, in the Medellin suburb of Girardota, also recycles PET plastic for tire manufacturers, plastics producers and textile producers.
Coltejer Losses Nearly Double
Meanwhile, Medellin-based textile manufacturer Coltejer this month reported that its 1H 2017 losses rose to COP$21.6 billion (US$7.3 million), compared to a COP$11.6 billion (US$3.9 million) loss in 1H 2017.
Sales also dropped sharply, to COP$72.8 billion (US$24.6 million), versus COP$122.8 billion (US$41 million) in 1H 2016.
Mexico-based Grupo Kaltex is the majority (82%) share owner of Coltejer.
Colombian textile producers have been complaining of a loss of sales this year due to continuing contraband clothing imports, a slowdown in the Colombian economy and a hike in value-added tax, which penalizes retail sales.
Familia SA 2Q 2017 Profits Soar Year-on-Year
Thursday, 24 August 2017 12:37 Written by Roberto PeckhamMedellin-based multinational personal hygiene products manufacturer Familia SA announced this month that its second quarter (2Q) 2017 net profits soared to COP$51 billion (US$17 million), up from a COP$51 billion (US$17 million) net loss in 2Q 2016.
Sales also rose in 2Q 2017, to COP$583 billion (US$196 million), versus COP$570 billion (US$191 million) in 2Q 2016, according to the company, which manufactures toilet paper, napkins, diapers, feminine hygiene products and other paper-based products for sale in 20 Latin American countries.
Grupo Familia was founded in 1958, initially as an importer of Scott toilet paper. But it now has four Colombian manufacturing plants -- in Medellin, Rionegro, Cajica, Cauca – a fifh plant in Aconcagua, Argentina, and a sixth plant in Santo Domingo, Dominican Republic.
Former employees involved in an alleged toilet-paper price-fixing scheme with other companies several years ago have since been fired. Familia also paid a COP$62 billion (US$20.8 million) fine last year to settle those charges.