Could you introduce Carbomax?

In the 10 years since I founded Carbomax, we have grown into a 1,500-person organization with expertise across the value chain: exploration, environmental and social studies, government relations, mine construction, extraction, processing, logistics, and foreign trade. Our portfolio includes thermal and metallurgical coal, copper, gold, and soon, ferrosilicon and silicon metal.

Could you elaborate on the mining business and your diversification focus?

Within our mining arm, we have three divisions. First, we operate open-pit thermal coal mines in the Córdoba region of Colombia, with an annual production capacity of 1 to 1.2 million t. 

Our second division focuses on the production of metallurgical coal (coke) in Norte de Santander, in northeast Colombia, with a production capacity of 250,000 t/y from our underground operations. This low-phosphorus coking coal is highly valued in ferroalloy markets, particularly for ferrochrome production. We plan to double this capacity over the next three years while maintaining a focus on low-phosphorus content.

Third, we have a polymetallic unit conducting gold and copper exploration in La Guajira, specifically at the La Jagua del Pilar project. We are also exploring copper in Bosconia and in the Córdoba region near our thermal coal mines. In addition, we are developing an alluvial gold project that is set to begin production this year.

Carbomax is launching a new production line for ferrosilicon. Could you comment on this expansion?

Carbomax is launching a new production line for ferrosilicon and silicon metal, and we have also set up a coal washing plant in Cúcuta, Norte de Santander, to serve silicon producers, a US$14 million project done in collaboration with Norwegian company CleanCarbon. The plant is completed, and we expect to ship the first industrial samples this year to various global markets. The new line completes our portfolio in the ferroalloy industry. 

Could you also provide an overview of the services side of the business? 

Carbomax supports both Colombian and international companies with mineral storage across the country. We manage the reception, stacking and processing (grinding and screening), as well as handling logistics to ports or to thermoelectric plants. We also provide consultancy services to both underground and open-pit mining, leveraging our expertise. As a Colombian saying goes, “he who teaches, learns twice”. We feel that by growing our support services, we also deepen our own know-how, and get to see others not as competition, but as partners. Indeed, we embrace foreign investment and want to position ourselves as a local partner. Right now, we handle nearly 1 million t in mineral storage every year. We’d like to grow our consultancy business, and we are also evaluating opportunities in contract mining. 

As part of our processing unit, we purchase between 600,000-700,000 t/y thermal and met coal from third-party, local coal providers, while for our logistics unit, we primarily deal with our own materials, but we also have capacity and support third-party clients. 

Colombian coal producers are set to make major production cutbacks this year. Could you explain the context?

The supply glut has dramatically impacted prices of both thermal and met coal, and the prices are correcting back to 2019-2020 levels. However, due to the highly inflationary post-pandemic period, it is impossible for us as an industry to return to pre-pandemic price points. This is why most Colombian producers have significantly cut back on production. 

What are Carbomax’s priorities moving forward?

Carbomax will increase the capacity of met coal for the ferroalloy industry and produce specialty products for coke used in the production of ferrochrome and ferromanganese. We will also continue our diversification journey, which we started about five years ago. We are leveraging our experience to develop copper projects in highly prospective regions that were previously inaccessible due to conflict.  In our search for copper, we also stumbled upon gold, a metal that never ceased to demonstrate its role as a safe-haven store of value in today’s global uncertainty.  At the same time, we will maintain stable thermal coal production. We are neither expanding nor downsizing. Despite the current political discourse, I believe coal consumption will rise in Colombia. Carbomax will be prepared to offer solid fuel to ensure the country’s energy security, just as we support other consumers like the Dominican Republic.