Colombia

Gold production in Colombia, which was the world’s seventh largest producer 20 years ago, has not flourished like most of its neighbors in South America, largely because of political instability and lack of security. No serious mining investment has been made in the country for many years. Colombia’s gold production has been declining steadily since the late 1980s, and GFMS estimated that in 2001 it had fallen to just over 20 tonnes (0.64 million oz). Most of the gold mining that takes place is informal; two historic mining companies, Frontino and Minas de Antioquia, account only for a small proportion of output. However, repeated devaluations of the peso have encouraged the informal sector, as the local gold price keeps rising. Thousands of barraqueros (prospectors) still work in the north-west province of Antioquia in the Andes foothills. Their unregulated digging and dredging has often done considerable damage to the local environment.