Economic reactivation: Gold mining projects in Colombia – More Content


At the beginning of this year, the price of an ounce of gold in the country was around 1,200 dollars, today (eight months later and with a pandemic that slowed the world economy) the value of an ounce of this metal reached 2,000 dollars, which translates into an increase of 60%.

For Colombia, a country in which only five mining projects (Buriticá, Mineros, Gramalote, Marmato and Soto Norte) have an extraction potential of 1,190,000 ounces of gold – almost 34 million grams -, this increase in its value, According to unions and experts, it translates into an opportunity for an economic recovery for the post-pandemic.

“To overcome the lag caused by this crisis, gold mining projects are fundamental, mainly because they will inject resources from taxes and royalties into the Nation, which will reduce the tax burden, thus avoiding a possible tax increase “said Jorge Castro Corvalán, civil engineer and consultant for business families.

In this link you can find a complete special on the details of the Soto Norte project, in Santander, with its delimitation and information on the municipalities near it, several of them with a mining vocation.

According to the Dane report for the second quarter of this year, of the Gross Domestic Product (GDP), the extraction of metallic minerals, such as gold, grew by 21.1%.
In contrast, the extraction of stone coal decreased 50.5%, and that of crude oil and natural gas fell 15.4%.

In fact, the president of the Colombian Mining Association (ACM), Juan Camilo Nariño, stated that the higher the price of gold, the greater the amount of income that the country will obtain from the payment of taxes and royalties on behalf of the projects that would extract gold.

On the other hand, as a “Golden opportunity for the country”, qualified the Minister of Mines and Energy, Diego Mesa, the rise in gold prices.

“The figures show that Colombia has a golden opportunity. The price of gold hit record highs, surpassing the barrier of $ 2,000 per ounce. At the end of 2019, Colombia’s gold production reached 36.6 tons and the goal is to double gold production by 2030, exceeding 60 tons with the entry of these large projects, by transforming the sector, ”said Minister Diego Mesa Puyo.

To overcome the lag that caused this crisis, gold mining projects are essential

Another advantage that the increase in the price of this metal leaves the country is that foreign companies, through mining projects, investments would increase, in different fields of the economy.

“The moment a company starts a mining project, it implies a giant investment: they have to move their equipment to the country, install it, hire personnel (from various disciplines) and carry out the procedures required by law,” said Lucas Arcila, Master in Public Policy from the Paris Nanterre University.

To understand the size of the money that the Nation would receive on behalf of this activity, of the 2,000 dollars that an ounce of gold currently costs, 31% of this price, that is, about $ 600, he stays in the country for taxes and royalties.

Among the taxes that companies have to pay are VAT and payroll taxes, profit and even explosives.

In this section, it is also necessary to take into account what is known in the economy as country risk and more in investments that are destined to mining.

“Investing in Colombia has more risks than doing it, for example, in the United States. However, as the profits of these businesses are profitable, the companies are willing to take the risk”, Clarified Sergio Cabrales, professor of the Master of Petroleum Engineering at the Universidad de los Andes.

The goal is to double gold production by 2030, exceeding 60 tons with the entry of these large projects

Illegal attracts crime

For Jorge Castro, among those interested in entering this business, with the rise in gold prices, are criminal groups.

“Gold will continue to rise in price, the $ 2,000 it reached is just one notch. This brings a consequence of care and is that If the professional and formal concessions of mining, especially gold, are not accelerated, criminal gangs will try to extract it on their own. Are licenses or violence”Castro warned.

Within this section, those familiar with the subject also conclude that the procedures to begin exploitation should be expedited.

“Many times the mining projects are delayed because the procedures are very long. The institutional system does not give a quick response and it takes months, and even years to grant environmental concessions and licenses. So if you want to reactivate the economy, you have to give them speed “Arcila concluded.

Employment generation

According to figures from the ACM, In 2018 alone, the mining sector generated more than 350,000 direct and indirect jobs throughout the country. For this reason, if extraction projects, not just gold, are carried out, the generation of more work would be promoted.

In fact, the gold mining projects of SOto Norte, Gramalote, Mineros and Buriticá would generate more than 11,000 jobs.

For the National Government, an important point to take into account in the economic reactivation is the formalization of the country’s small miners.

“In addition to contributing to increased production of legal gold, it can positively impact the lives of many miners and their families. To the date, We have achieved that around 1,700 small gold miners have consolidated their mining and environmental legality. Likewise, we work so that almost 6,000 small miners consolidate the path begun under the different figures authorized by law, of which about 2,400 are in Antioquia, and we are accompanying 3,000 small gold miners with a vocation so that they can start this transition to legality, “said the Vice Minister of Mines, Carolina Rojas.

Why did gold go up?

There were several reasons, partly driven by the Covid-19 pandemic, that led to gold reaching historic prices, not only in Colombia, but also in the world.

“Gold has been the currency of all central banks, when it rises, due to uncertainty, all banks try to have a little safe haven money. Added to this is the drop in interest rates, ”commented Jorge Castro.

Safe-haven money, like gold, are assets that are safe despite the economic uncertainty that surrounds the planet and that, in general, do not fall in price. Therefore, the great demand for this metal, together with the fall of the dollar, led to an increase in its prices.

Colombian gold in the world

With 35.6 tons, Colombia ranks 22nd in the world ranking of gold production, which is led by China with 401.1 tons, followed by Australia (313) and Russia (279.9).

According to calculations by the Colombian Mining Association, with the new gold extraction projects, the country would reach 81.4 tons, which would allow it to reach 15th place in this world ranking.

Part of the increase in tons produced would come from Gramalote (Antioquia) and Soto Norte (Santander), each with a potential of 400,000 ounces, which would place them in position 39 in the list of mining projects in the world, led by Muruntau, in Uzbekistan, with more than 2,600,000 ounces.

The different uses of gold

Electronic chips: It is very likely that the computer or cell phone from which you are reading this has gold inside. This metal is a good electrical conductor and does not corrode easily.

'Tips' to clean the car engine

Vehicles: Again, due to its resistance to corrosion, gold is used in various parts of vehicles such as the engine and its electronic components.

Gold price in new record

Jewelry: Perhaps the best known use. For its beauty, strength and malleability, gold has been used by mankind for jewelry making for centuries.

satelite

Satellites: Although it sounds strange, parts of some space satellites have gold inside them, mostly used as a thermal insulator.

Gold coin

Money: From the minting of coins to the making of bullion, gold has long been used as an exchange for goods and services.

* Special editorial content project, under the auspices of the Sociedad Minera de Santander (Minesa).

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Pigs for China, between challenge and opportunity

The impact of this mortality hit the economy of one of the most important countries in the world and caused a surge in demand and prices in all meats that even our country took advantage of: China hastened health agreements and increased purchases of beef to Argentina with record prices and volumes for the approval of our meat processing industry. From now on, China will need to import more and more meats of all kinds, mainly pork, the most consumed worldwide and that is why it went out to look for alternatives. This is where Argentina appears, with a competitive production cost worldwide, waiting with open arms investments that could exceed US $ 3.5 billion in the next 6 years.

This would be accompanied by construction of 25 integrated units in several provinces where balanced feed processing plants, biodigesters, hatcheries, refrigerators, and effluent treatment plants will be installed.

Today the Argentine production of pork is around 700 thousand tons and could double. That is a possibility that not all producing countries have. The need for animal protein is latent: just for reference, the China Institute of Agricultural Economics and Development confirmed that pork imports could be around 4 million tonnes in 2020.

This agreement would generate a positive impact in terms of investment and new jobs in each of the localities where the production units would be installed and in this regard there is no type of proposal or opposition since the productive north of Argentina goes through producing more food and sell it to the world. However, the questions that arise regarding the distribution of farms, the risk of productive surplus, the socio-economic approach and the environmental impact must also be answered. In fact, at a recent meeting of ministers of the agricultural area of ​​the central zone, the need to respond to all kinds of concerns from biosecurity was raised. The opportunity brings with it a challenge and responsibility so that the increase in production flows in a friendly way with the environment and the production chain in economic terms.

If we want to exponentially increase employment per hectare of grain produced by transforming it into meat, develop new productive areas with the location of the farms and multiply the profitability per ton of soybeans and corn, this is the time and we can do it because we have efficient producers, resources technicians with the required know-how and a health status envied by many countries in the world.

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Fed will not go into minus – Kommersant newspaper No. 83 (6804) from 05/14/2020

The head of the Federal Reserve System (FRS), Jerome Powell, warned of the long-term risks of a deep recession and a fall in US employment, urging Congress and the White House to take new steps to support the US economy. At the same time, he said that the Fed does not consider the possibility of removing the key rate from the current near-zero level to the negative zone, on the eve of the desirability of such actions, US President Donald Trump said.

The US economy may face the long-term negative effects of the coronavirus outbreak, as liquidity problems eventually lead to bankruptcies, Fed Chairman Jerome Powell warned Wednesday. He invited the US Congress and the White House to take additional measures to help the economy. According to him, fiscal support, although it will entail an increase in the budget deficit (now it is about 20% of GDP, a level of 10% was considered acceptable in recent years), but it will allow the economy to recover faster.

Mr. Powell described the role of the Fed as “covering temporary liquidity problems,” recalling that the regulator can “lend, but not spend.”

The Fed has already made three decisions on additional measures to support the economy in a pandemic. At first, the discount rate was reduced, then short-term liquidity was announced, and at the end of March the regulator promised for the first time to use the “whole set of measures”, thereby effectively removing the limit on the volume of asset repurchases. In addition, large-scale concessional lending programs for the business were initiated with a total volume of $ 2.3 trillion (this is approximately 10% of the country’s GDP, see Kommersant on April 10). For its part, Congress approved three aid programs worth $ 2.9 trillion, equivalent to 14% of GDP.

In the United States, more than 20 million people have already lost their jobs. Among those who were busy in February and whose income does not exceed $ 40 thousand per year, now 40% do not work. Given such a sharp fall in employment, consumption is likely to wait for a slow recovery, according to ING Bank. This, in turn, will put additional pressure on inflation – in April, prices have already fallen by 0.8% month-on-month (including excluding food and energy – by 0.4%).

Donald trump on the eve again called on the Fed to further reduce rates, bringing them into the negative zone. He noted that other countries are already benefiting from this (the ECB, the central banks of Japan, Sweden and Switzerland used this measure at different times). However, Jerome Powell said Wednesday after the speech that members of the Federal Open Market Committee of the Fed did not, in principle, consider such a measure. In his speech, he also pointed out that low inflation has been accompanied in recent decades by the accumulation of imbalances in asset prices. The experience of countries where negative rates operate is not considered by experts as unambiguously successful, they add to ING, noting that the Fed is unlikely to shift them in the opposite direction in the next year and a half.

One of the problems of the controversy surrounding negative rates is the perceptible gap between the conclusions regarding the effects of the transition to the “economy of negative rates” that politicians make from standard economic models and the more complex constructions that the Fed uses.

The main problem of negative rates is that this step can be discussed along with others only in the concept of “least evil” and in the absence of other alternative monetary policy options. For example, a short-term negative rate, all other things being equal, may be an acceptable solution to problems with a sharp temporary reduction in bank capital. In the general simplified case, the provision of money at a negative percentage with high risks in the economy provokes banks to the only rational behavior: to fix the profit generated by the Fed for free, without essentially getting involved in any substantial projects. In this sense, the program of conditionally addressless distribution of funds by the government, up to “helicopter money”, looks in most cases a more reasonable alternative to a negative rate.

Tatyana Edovina, Dmitry Butrin

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Volkswagen Tiguan vs GAC GS8 – what to buy for 2 million rubles?

As part of a detailed test, you can determine the strengths and weaknesses of two mid-size crossovers.

Volkswagen Tiguan entered the Russian market more than 5 years ago, while the GAC GS8 is, in fact, only an ambitious debutant who will either find his audience or fail in sales, becoming the next Chinese crossover that he couldn’t. Assessing the prospects of the GS8 against the backdrop of Tiguan is not only a big advance for an SUV from the Middle Kingdom, but also the opportunity for a well-deserved “German” to test his own strengths.

For starters, you need to compare both cars “on paper”. In terms of overall dimensions, that Volkswagen Tiguan, that the GAC GS8 belong to the segment of mid-size crossovers, but the Chinese SUV is longer by an impressive 40 cm, and also slightly wider and higher, which already implies a larger supply of free space for passengers. However, because of this, the GAC GS8 has a mass of more than 500 kg, and this will affect the consumption and off-road capabilities.

The trunk volume of the Volkswagen Tiguan is 615 liters, for the GAC GS8 this figure is lower by 20-25 liters, but at the same time, the loading area is higher in the crossover from the Celestial Empire. In terms of fuel consumption, both cars can not be called “voracious”, but the “Tigi” average consumption is 6.8 liters per 100 km against 8.7 liters per “hundred” in the GS8. However, the “Chinese” can be refueled with 92nd gasoline, while the “German” is recommended to “feed” exclusively AI-95.

At a price of up to 2 million rubles, Volkswagen Tiguan will be equipped with a 2-liter 180-horsepower engine with a DSG robotic gearbox and all-wheel drive, which the GAC GS8 lacks in any design. At the same time, the Chinese “novelty” in any configuration gets a 2.0-liter engine producing 190 horsepower, as well as an “honest” automatic transmission, which looks like an advantage over the DSG, because Russian motorists treat it very ambiguously.

The speed characteristics of the GAC GS8 are worse than the Volkswagen Tiguan due to the larger mass, but interestingly, both crossovers accelerate to “hundreds” in less than 10 seconds – 7.7 seconds for “Tigi” and 9.8 for “Chinese” “. As for prices, the basic configuration of the GAC GS8 starts in Russia from 1.8 million rubles, while the Tiguan – from 1.6 million, but if we talk about versions for 2 million, both cars are similar in equipment: there are enough “luxury” ones options, and high-quality finishing materials, and original solutions for ergonomics.

In this comparison, the German “braid” found a Chinese “stone”: if you evaluate the numbers, then the GAC GS8 is more suitable for family people who are primarily interested in a roomy cabin and the ability to carry bulky loads in the trunk, and Volkswagen Tiguan, as before, more focused on youth audiences.

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In Ferrara shops open from 11 May – Ultima Ora

(ANSA) – FERRARA, MAY 5 – Non-food stores in Ferrara
they can be opened from 11 May, in advance of one
week compared to the rest of Italy. An ordinance provides for this
who will sign the mayor Alan Fabbri (Lega). “We want to give
trust the Ferrarese – he said – and breathe in the many realities
commercials that are likely to come out on their knees from this
lockdown. We are sure that the people of Ferrara will know how to manage in
best way this opportunity. “The ordinance will allow
all stores to resume selling, respecting the rules of
health security provided for commercial establishments already
open. Only one member of the family can enter,
you can stay in the shop for the time strictly
necessary to purchase and measures must be taken that
ensure the quota of the entrances, with the strict
compliance with the distance of one meter and the prohibition of each
gathering inside and outside. Immediately, the shopkeepers
they will have access to the premises for cleaning and sanitization.

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