economy
May 8, 2026
Gas suspension would generate irreparable losses in the Cerro Matoso plant for more than $1.3 trillion
Ricardo Gaviria, president of Cerro Matoso Photo: Courtesy
TL;DR
- Cerro Matoso's operation is critically dependent on a continuous gas supply from Canacol Energy, which provides 80% of its daily consumption.
- Termination of gas contracts by Canacol Energy could force Cerro Matoso to cease operations, as stopping its furnaces would cause irreparable damage estimated at over $1.3 trillion.
- A shutdown would result in the loss of approximately 10,000 direct and indirect jobs, impacting about 50% of the local population in southern Córdoba.
- The country could face daily losses of around $3 billion in taxes, royalties, and local procurement.
- Alternative fuel sources like diesel or coal are not immediate viable options due to extensive modification requirements, and imported gas presents reliability and cost issues.
- Other challenges facing Cerro Matoso include unfavorable exchange rates and a decrease in nickel content in the ore, increasing production costs.