Anna on FARC Deal... Came across this article this morning. Nothing really new or interesting about the content itself, but what I did find interesting is that, of all of the issuers operating in Colombia, and under more favorable conditions than us, Anna is quoted with reference to EOM having a gold project there.
Not that there's really much ado about her quote either, but EOM's challenges extend far beyond the FARC issue and I would think that with the current situation EOM is in, they would either stay silent or speak to the other challenges they are facing and the risk of investing in Colombia.
Funny they even mention that EOM has a gold mining project there right now, when the current court ruling and arbitration posturing seem to imply we do not have a project. No indication of the challenges we supposedly face in the article either.
Why not get a quote from a company with a successful investment in Colombia that actually has a legitimately permitted project instead, rather than a company whose project appears to have been cut off at the knees and is heading for an arbitration dispute?
And why give a quote on this issue at all, when it appears that Colombia has once again "bent you over" on unrelated issues?
Hmmm.....Weird
https://business.financialpost.com/news/mining/farc-ceasefire-makes-colombias-resources-attractive-for-canadian-firms-but-challenges-remain FARC ceasefire makes Colombia’s resources attractive for Canadian firms, but challenges remain
The Colombian government has reached a landmark ceasefire agreement with the country’s largest rebel group, a move that could make its resource sector more attractive for companies in Canada and elsewhere.
The historic signing of the agreement between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) took place in Havana, Cuba on Thursday. If the peace is maintained, this deal will end a bloody conflict that has lasted more than five decades, caused more than 200,000 deaths and displaced millions. President Juan Manuel Santos and FARC leader Timoleon “Timochenko” Jimenez signed the accord, with UN Secretary-General Ban Ki-moon looking on.
“Let this be the last day of the war,” Timochenko said, according to reports.
This ceasefire is expected to provide a boost to the economy by improving public safety and broader economic stability. Experts said it should immediately make Colombia more attractive for foreign investment, and Santos previously stated that a peace agreement with the FARC could boost annual gross domestic product by 1.5 per cent. The Colombian Peso rallied this week on the settlement.
“If both sides are really honest about making this work, it’s going to be an incredible thing for the country because it will create stability and foster growth,” said Anna Stylianides, executive chairman of Eco Oro Minerals Corp., which has a gold project in Colombia.
For Canadian firms, Colombia’s rich oil and mineral resources have been the country’s biggest draw. And while several Canadian firms have had success in Colombia, rebel groups have been a major cause of concern. In 2011, FARC rebels abducted 23 oil workers employed by Talisman Energy Inc. (Fortunately, nearly all of them were quickly rescued.) In 2013, the National Liberation Army (ELN), another far-left rebel group, kidnapped a Canadian executive with Braeval Mining Corp. He was detained for seven months before being released.
Even though the FARC’s activities are largely confined to small geographic areas and are far from most resource projects, the rebels were still disruptive. They frequently attacked oil pipelines, causing major economic damage.
However, resource companies in Colombia have been plagued by bigger problems that have nothing to do with security. In mining, the biggest challenge has been the regulatory environment. Some projects have faced years of permitting delays with no end in sight.
“The laws haven’t adapted to the pace that mining companies require. They’re still lagging behind the urgency of how quickly these companies consume capital,” said Igor Dutina, a spokesman for Atico Mining Corp. However, he does think positive progress is being made.
The regulatory framework works better in the oil and gas sector, but production in Colombia seems to be plateauing and new discoveries have been scarce. Also, protests and community relations have been a problem for some energy firms.
While the demobilization of the FARC should vastly improve Colombia’s security situation, experts noted the issue will not go away. The ELN and other armed groups remain active, and many FARC members could join the ELN and continue to engage in criminal activities.
The peace agreement still needs to be ratified to go into force. Santos wants to complete a deal by July 20.
One risk to the ceasefire is that it remains highly unpopular in some political circles. Santos’s approval ratings are very low in Colombia, and former President Alvaro Uribe — who spearheaded a fierce crackdown on FARC rebels while he was in power — has been extremely critical of the peace talks.
Financial Post
pkoven@nationalpost.com