Peace presents new opportunities for mining

Colombia’s economy has grown by leaps and bounds in recent years.

Significant improvements in the domestic security situation have enabled its export-oriented industries to compete on an international level.

One of these growth industries is mining, and a young Colombian company is making its mark on the sector.

“The minerals industry in Colombia is still young — it’s still in its inception,” said Mario Escobar, president and CEO of mining company Ashmont Resources.

Coming from a background in investment banking, Escobar saw a unique business opportunity in the mining industry in 2010.

“I saw a huge gap between the amount of capital available for mining and the large deposits of natural resources we have here in Colombia,” he explained.

Escobar and his colleagues were among the first to foray into Colombia’s mining industry. In fact, the company represents one of the select few private exploration companies in Colombia and is also one of the only private exploration companies in the country heavily backed by strong international shareholders.

“We are looking to build Ashmont as a different type of brand and exploration company,” he said.

It is usual practice for public exploration companies to develop their mineral assets and then sell them off, with an average lifespan of around 10 years. Ashmont is taking another approach.

“Our model aims for the continued growth of our company for at least the next 30 years,” said Escobar.

“We will develop our current assets, acquire new ones, and grow our portfolio and our relationship with both local authorities and foreign companies.”

Currently, Ashmont has two main assets: the El Alacran and the Santa Cruz mines.

“Our flagship project in El Alacran is already in its second phase of development — and is far ahead of schedule,” Escobar said.

“Given its strong regional infrastructure and economics, and especially its proximity to a port, we believe it can be the most important copper mine in all of Colombia.”

Ashmont’s Santa Cruz gold and silver mine project is currently in its pilot plant stage for small-scale production.

It is slated to begin production by December 2013 — with a monthly production of 1,500 ounces — and is rapidly approaching its second phase.

Escobar recently returned from mining conferences in Beijing and Hong Kong. He said he was thrilled by the experience. “My travels to China were incredible in how they showed me the great opportunity for more commerce between China and Colombia,” Escobar recalled.

“It will take time for China to enter a relatively new country such as Colombia, but I am very excited because Ashmont’s unique company model is very compatible with Chinese business goals in international mining.

“We are different from other exploration companies operating in Colombia in many ways, but the most important fact is we are a Colombian company and we are looking forward to achieving a production level in balance with exploration goals,” he said.

“We intend to lead the way in Colombia’s burgeoning mining industry.” www.ashmont.ca World Eye Reports provided the story