If you ever have a chance to travel to Colombia’s cosmopolitan capital, you will find it hard to miss the local gold museum. The collection, similar but superior to similar permanent exhibitions in Lima, Quito or Capetown, brings together exquisite artifacts from the pre-Colombian cultures of Calima, Quimbaya and Tolima. Nothing beats the gamelan-like jingle of the grand finale, offered to visitors in the hall emblazoned with countless golden disks.

Yet, for years, the history of gold mining in Colombia was just that, a history. In the country known for its flagship coal (Cerrejon) and base metals (Cerro Matoso) operations, the gold production was long limited to informal sector staffed by barraqueros active in the province of Antioquia. The deterioration of the security situation in the country pushed down the national production to barely 20 tonnes per annum in the 1990s. As President Pastrana had his eyes on the Nobel Peace Prize, the country slid into chaos.

Two things have changed since then: the gold price and the Presidency. Last weekend, Colombians cast their votes in the first election since 2002 which did not feature Alvaro Uribe as a candidate. In just 8 years, Uribe’s security policy has completely transformed the country. In my frequent visits to Colombia, I could sense tangible improvements with more and more regions of the country open to astute gold explorer and nature-loving hiker alike.

And in they moved. High geological prospectivity and immaturity of the existing exploration programs run by local firms, such as Frontino and Mineras de Antioquia, enticed foreign companies to bank on further improvements in the security situation. In 2004, AngloGold Ashanti set up its first exploration office in Colombia, focusing on porphyry/epithermal systems, sedimentary-hosted gold and mesothermal vein systems. Meanwhile, Canadian junior Greystar entered Santander province, developing a high-sulphidation system in Angostura.

Thanks to the international confusion surrounding the situation in Colombia (some left-wing NGOs in Europe still consider FARC a freedom-fighting force, rather than drug-financed terrorist organization), these pioneers confronted less competition for prospective ground than in more mature areas of the Andes. A threefold strategy was necessary to turn an exploration prospect into a project and a project into a mine. First, geological work had to advance apace in often isolated, mountainous regions. Secondly, personal, access and zone security had to be assured. And finally, highly professional community development work had to engage the local population while constantly managing the expectations of prospective economic and social gains from the future mine.

But this is mining, and mining never comes without hiccups. Last April, the Colombian government asked Greystar to provide a new Environmental Impact Assessment for all operations above 3200m level, increasing the risks of delays to the Feasibility Study. The new legislation, aimed at protecting the vital paramo highlands was introduced after the filing of the original EIA by the company. Not surprisingly, Greystar’s share price lost half of its market value in one day. Earlier this week, the decision has been revoked (and the share price partly recovered), yet the grandfathering of the old EIA is not yet 100% certain.

Despite such travails, the industry remains optimistic about Colombia’s gold prospects. This week, the CEO of AngloGold Ashanti lashed out against Canberra’s efforts to socialize earnings from mining operations in Australia, and mentioned Colombia among the company’s favorite destinations. Indeed, AngloGold Ashanti’s discovery of 12moz resource at La Colosa sent shockwaves around the mining industry, long hungry for elephant-size finds in the Andes. At Toronto’s PDAC two years ago, wishful thinking abounded about a possible link-up between Aurelian’s Fruta del Norte asset in Ecuador and La Colosa. Aurelian was eventually acquired by the ever merger-happy Kinross and the border tensions between the two countries would in any case have made any such tie-up unworkable. But rumors surrounding possible M&A activity in Colombia have not entirely disappeared. Some analysts continue to believe that Gold Fields, which has operations in neighboring Peru, could be tempted by Greystar – a large, low-grade heap leach open pit mine with refractory ore that may require BIOX further down the line.

None of this effervescence would be possible without Alvaro Uribe’s dedicated commitment to rid the country of the plethora of armed thugs – from right-wing paramilitaries to EPL, ELN and FARC. There was a danger that Uribe’s continuously high approval ratings would lead to de-institutionalization of the Presidency in what is historically the most democratic country in Latin America. This danger has now been averted. Last Sunday, the former defense minister Juan Manuel Santos received nearly 47% of the vote. He has since secured the Conservative Party’s support for the runoff, making it virtually impossible for Antanas Mockus of the Green Party to win the election. Whatever could be the future of ‘Uribismo’, stability and continuity now appear guaranteed in Colombia. And that is good news for gold miners with a Colombian strategy.

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Tags: AngloGold Ashanti, Colombia gold, EIA, gold exploration, Greystar, post-Uribe Colombia