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South32 yet to invoke force majeure in Colombia

South32 Ltd. told contractors and suppliers at its Colombian nickel operations to scale back to essential activities as community protesters block the movement of people and supplies to the giant open pit mine and smelter.

While roadblocks are preventing product from leaving the Cerro Matoso site, it is yet to invoke force majeure on contracts with clients, a company spokesperson said Thursday, correcting comments by a senior executive on Wednesday.

Protests at one of the world’s top suppliers of ferro-nickel, used to make stainless steel, is the latest example of residents pushing for greater benefits from mining, part of the industry’s battle to attain and maintain social acceptance. At Cerro Matoso, members of two communities have blocked access roads since Sunday, with some protesters entering the site in the northern department of Cordoba.

While South32 can’t privilege one community over another regarding job opportunities, it’s always open to dialog, the Perth, Australia-based company said. Cerro Matoso employs about 2,000 people and is an engine of the local economy.

(By James Attwood and Andrea Jaramillo)

(Company corrects previous force majeure comments in headline and second paragraph)



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