Asociación Colombiana de Minería (ACM)
The great challenge of coal
According to figures from the National Mining Agency, coal production in the first half of 2020 had a drop of 26.8%, due to the suspension of operations in the north of the country. Never before in our history have two coal mines been suspended simultaneously.
The projection of exports for the year indicates that only 50 million tons will be exported. Compared with the 90 million tons annually exported between 2016 and 2018, the above highlights the seriousness and urgency of taking quick and concrete actions.
For months, we have been insisting on the imperative need to build a differential policy to boost the competitiveness of coal and establish a clear roadmap that allows it to face the constant changes in international markets.
Our coal has stabilized the country's public finances through the generation of foreign exchange, has contributed 2 trillion pesos to the general system of royalties in the last three years and has paid in income tax, about 1.5 trillion pesos annually in the last two years.
Added to the above are the contributions in the regions where this industry develops. Only in purchases of goods and services, the mining sector has invested close to 3 billion pesos, in social issues more than 160 billion pesos and in environmental projects, more than 530 billion pesos respectively.
Despite the foregoing, there is in the public discussion an accentuated statement about the imminent end of the coal industry in the world, arguing that all the countries are going to stop producing energy based on this mineral.
However, according to the World Energy Institute by 2040, coal will represent 25% of the planet's energy matrix; Japan plans to build 22 thermoelectric plants in the next 5 years; China, Indonesia, Vietnam and the Philippines, among others, have budgeted to double their coal-fired generation capacity.
Those who think that the life of this industry is the chronicle of an announced death are wrong.
So the question we must answer is how to draw a roadmap to take advantage of a different world market, but not extinct? The coal market has changed, it has new dynamics and as a country we must understand them and look for new ways to access it.
The opposite would be to leave 70 years of reserves buried and deny the possibility of translating that wealth into more royalties and with it, more schools, better roads, hospitals and libraries, among many other benefits.
So why not create a policy for competitiveness that allows us to fight, hand in hand, with the players in the Asian market?
The debate is open. The future of Colombian mineral, workers and surrounding communities is in our hands, in the ability of citizens, government and companies to unite and lay down a roadmap for a sector, which in recent years anachronistic discussions have minimized. We cannot continue to postpone this responsibility.
Juan Camilo Nariño Alcocer
President of the Colombian Mining Association
Source: https://acmineria.com.co/acm-boletin-economico-diciembre-2020/
|