Emirates deploys in Colombia in search of gold
The United Arab Emirates continues its expansion into other territories in order to benefit from the economic resources they have based on economic agreements and contracts. Gold is one of the most prized minerals in the Gulf country, and its population enjoys accessories made from this stone. The mineral is in high demand in the nation, so its search and exploitation is the focus of the Emirati government.
Mubadala Investment Company, an investment company dedicated to managing Emirati assets abroad, has announced a partnership with Aris Gold Corporation, a gold mining brand, to start a new project in Colombia. Specifically, work will begin on the Soto Norte gold deposit. The discovery of gold in this Colombian region is one of the largest feasibility projects in the world and is reaping great results due to the amount of gold found in the ground here.
The two companies will sign a global agreement to start operating in the area and to be able to exploit this natural resource. This will be done through a joint partnership and through the company Minesa. Minesa will have environmental licences to avoid harming Colombia's diverse fauna and flora, as well as other resources to further develop the project and the exploitation of the gold mine.
"We are delighted to bring Aris Gold on board as our operating partner in Minesa. The Soto Norte project will benefit from their technical capabilities and local market expertise, and we look forward to working with them and the local project communities to deliver this world-class project," commented Danny Dweik, CEO of Mubadala Industries and president of Minesa after announcing the partnership and the desire to begin this project.
On the Aris Gold side, Neil Woodyer, the company's CEO, will be appointed as the new CEO of Minesa. He will mainly be in charge of the preparation of the application for the licence to start mining the geological deposit. In addition, Mubadala will secure an important position as a member of the mining industry in Colombia, as it has been operating in Soto Norte for quite some time. It will also ensure that all measures to create sustainability and not to harm the environment in accordance with international climate change and greenhouse gas regulations are complied with.
Minesa will also be the 100% owner of the Soto Norte gold project. In return, Aris Gold will receive a 20% stake in Sociedad Minera de Santander (SAS) and Sociedad Minera Calvista de Colombia, although Minesa has offered it an additional 30% stake. In addition, Aris is as of this month the main operator in the area and since January last year prepared a feasibility study that has already come into effect in partnership with SRK, SNC-Lavalin and Minesa.
The Soto Norte project provides a large resource base with significant additional potential to increase it further. It is a large-scale underground mining excavation and has always been a low-cost gold mining operation in Colombia. It is located between the municipalities of California and Vetas, approximately 350 kilometres north of Bogotá, the capital of Colombia, and very close to the city of Bucaramanga, capital of the Department of Santander.
Soto Norte has been mined since 2005. Ventana Gold Corporation, a Canadian company, first started working in the area and carried out the exploration project known as La Bodega. This explored the surface of the ground in search of diamonds. Later, in 2011, the EBX Group bought the Ventana project for $1.4 billion and it was subsequently renamed El Gigante.
In 2015, Mubadala took ownership of the project and its subsidiary, Minesa, has continued to take the project further. Minesa has conducted extensive consultations and invested significant resources in engaging with local communities to assess the situation and status of the project, as well as to ensure the safety of the Colombian environment.
Americas Coordinator: José Antonio Sierra