The dispute between the Colombian government and China’s Zijin Mining regarding gold mine safety continues to escalate. Colombia accuses Zijin of downplaying safety risks in its IPO prospectus while simultaneously seeking compensation for gold mine safety issues. They argue that the information disclosed by Zijin in the prospectus contradicts their claims in the arbitration.
According to arbitration documents released this week, the Colombian government, in its defense submitted to the International Centre for Settlement of Investment Disputes (ICSID) under the World Bank, stated that they have taken appropriate measures to combat illegal mining activities and ensure gold mine safety. They question Zijin Mining’s inconsistent descriptions of the safety conditions at the Buriticá gold mine in Colombia.
Colombia points out that Zijin Gold International, a subsidiary of Zijin Mining, described the Buriticá gold mine in its IPO prospectus filed in Hong Kong in 2025 differently from the claims made during the arbitration process.
Colombia believes that Zijin Mining claimed in the arbitration that illegal mining and related violent incidents caused significant damage to the gold mine, yet in the IPO prospectus, they portrayed the mine as a well-operated asset without major issues, potentially distorting significant facts to the arbitration tribunal without fully disclosing related risks to investors.
Zijin Mining is a large Chinese mining company headquartered in Shanghang, Fujian, mainly engaged in the exploration, development, and production of gold, copper, zinc, lithium, and other mineral resources, listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
Zijin Gold International was listed on the Hong Kong Stock Exchange on September 30, 2025, raising approximately $3.2 billion, setting a record for the largest global gold mining IPO at that time and ranking second in global IPO size in 2025.
In 2020, Zijin Mining acquired the Buriticá gold mine from the Canadian company Continental Gold. In recent years, the mine has been affected by illegal mining activities and criminal organizations, with attacks leading to casualties among employees and significant economic losses.
In November 2024, Zijin submitted an arbitration request to the International Centre for Settlement of Investment Disputes, accusing the Colombian government of failing to adequately safeguard the mine’s security and seeking compensation for related losses.
An article in the Colombian newspaper El Espectador on August 4, 2024, stated that Zijin Continental Gold, a subsidiary of Zijin, demanded $430 million from the Colombian government for failing to protect their investment in the Buriticá gold mine, although the specific amount has not been disclosed in public arbitration documents.
Zijin Mining is expected to respond to the accusations made by the Colombian government in November. Currently, both parties are presenting their respective arguments in the arbitration process, and the outcome of the case is yet to be determined.
(Reference: This article is based on a report by Reuters)