The vice comptroller with general comptroller functions, Carlos Mario Zuluagasent a letter to the national government questioning the decision to stop exporting coal to Israel. The measure was announced weeks ago by the president Gustavo Petro in rejection of the Asian country’s war actions in Gaza.
However, for the vice comptroller, this measure hits confidence in Colombia. “There is concern about legal security, especially the commitments assumed internationally, for example free trade agreements, in this case the one that Colombia has had with Israel since 2020, and it is also likely that business autonomy is being restricted,” said the vice comptroller in the letter.
Context: Petro prohibited selling coal to Israel: Cesar and Guajira would lose $100 billion in royalties
He explained that it would be violating what is contemplated in article 98 of Law 685 of 2001, which states that each company has “freely the destination of the exploited minerals”.
“The CGR considers that the draft decree causes legal uncertainty and a disincentive to foreign investment, since the coal and briquettes (coal) exported to Israel are exploited by companies with foreign capital, mainly by Drummond and El Cerrejón” , he adds.
JOBS ARE LOST
Drummond and Cerrejón They operate in the departments of the Cesar and La Guajirarespectively, therefore, they would be the territories most affected by this decision of the national government. Data from the Mining and Energy Planning Unit, UPME, point out that coal exports to Israel amounted to 2.45 million tons in 2023, which meant close to $650 billion in royalties, taxes and contributions to the Nation; and close to $100 billion allocated specifically to the departments of La Guajira and Cesar.
Recommended: In Cesar, 81% of the inhabitants consider that mining has a positive impact
“If this decree is approved, the Nation could stop receiving resources, which would affect the projects that are supported under the General Royalties System. On the other hand, the decrease in the exploitation of thermal coal would directly affect the generation of employment, both direct and indirect, in the producing regions,” he said.
IT DOES NOT AFFECT ISRAEL
As with several sectors of the opposition, the vice comptroller stated that the decree would not affect Israel’s economy, since countries such as Australia, Indonesia, India, among others, could fill the void left by Colombia.
“The message that the The national government is sending to the world, taking into account that in addition to discouraging foreign investment, it is being understood that the Nation “It does not have the legal stability to guarantee compliance with the obligations acquired as sellers of raw materials, not only within the mining sector.”
By Deivis Caro
