Gold production
in Colombia, which was the world's seventh largest producer 20 years ago, has
not flourished like most of its neighbours 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.
Mining