Glencore Prodeco to Relinquish Mining Contracts
Glencore confirmed that its Colombian subsidiary, Prodeco will commence the process of handing its mining contracts back to the Republic of Colombia through the National Mining Agency. The mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete. The port will continue to operate in line with its obligations as a public service port.
Last month the Colombian National Mining Agency (ANM) declined Prodeco’s request for the Calenturitas and La Jagua mines to remain on C&M. Further to ANM’s decision to decline Prodeco’s request, Prodeco conducted another operational review to identify further cost efficiencies, given that the ANM expected prices to remain low in Prodeco’s target markets. The conclusion of the review was no different to previous ones conducted by the business; it continues to remain uneconomic to re-commence operations.
The decision to relinquish the mining contracts was not taken lightly and is a disappointing outcome. Grupo Prodeco has over the last 30 years invested in excess of US$3bn and paid almost US$3bn in royalties and taxes. We are proud that our investment in a multitude of social engagement projects and initiatives, has delivered tangible improvements in the quality of life for the surrounding communities, and supported the important Peace Process in Colombia.
Prodeco’s key priority is its workforce and local communities.
Prodeco will engage with its employees, contractors and host communities on the impact of relinquishing the titles. Prodeco has re-commenced the voluntary redundancy programme which significantly exceeds the statutory requirements under Colombian law.
This process will also be supported by a social transition programme for the workforce and the communities surrounding Prodeco’s operations.
Further updates will be issued as appropriate.