Zijin Mining Loses $200 Million: Colombian Drug Cartel Plunders 3.2 Tons of Gold

According to the Wall Street Journal, Chinese mining giant Zijin Mining's gold mines in Colombia were looted by drug cartels, resulting in the loss of about 3.2 tons of gold, worth about $200 million.

There have been frequent clashes between Zijin's security guards and the cartel, which is controlled by the Gulf Clan, who operate a massive illegal mining operation by manipulating illegal miners into the mines.

The underground tunnels reportedly stretch for 30 miles, and Zijin estimates that they are controlled by more than 60 percent of illegal miners. The company's security officer said that illegal mining activities have caused significant losses to the company and even affected the future of the company's gold mining rights. Last year alone, the company lost the equivalent of 38 percent of its total production, or about $200 million.

Zijin Mining said that since the company bought the gold mine for $1 billion in 2020, drug cartels have been expanding their control of the mine. Li Leizhong, the company's chief executive, said the company had repeatedly asked the Colombian government for help, but so far with limited success.

Daniela Gomez, Colombia's deputy defense minister, said the government did not have enough resources to weed out illegal miners, noting that Zijin already knew of illegal mining activities when it acquired the mine. She said the government wanted to avoid clashes that would result in civilian casualties and described the complexity of law enforcement and legal procedures.

Zijin has filed a $430m lawsuit with the International Centre for Settlement of Investment Disputes (ICSID), accusing Colombian authorities of failing in their duty to protect corporate investment. The company believes that the illegal activities of illegal miners and drug cartels have not only led to huge economic losses, but also seriously threatened the legal operation of Zijin Mining.

At present, Zijin Mining is using additional security measures, building sandbag walls and other means to defend against illegal intruders, but the underground conflict continues. Companies estimate they have been forced to abandon about 40 tons of gold deposits, while Colombia as a whole lost about $100 million in tax revenue last year.