Canacol gas supply cuts force Cerro Matoso ferronickel mine to reduce output
2026-07-02 11:04:38 [Print]
Colombia's Cerro Matoso ferronickel mine announced on Wednesday that it is scaling back operations by 25%, following a reduction in natural gas supply from Canada's Canacol Energy. The move threatens jobs, supplier contracts, and fiscal contributions to the government.
Cerro Matoso, owned by CoreX Holding and situated in Colombia's northern Cordoba province, stated that Canacol had lowered gas deliveries to 7,000 MMBtu per day starting July 1-a 55% cut from the contracted volumes.
The miner attributed the reduction to Canacol's recent filing for creditor protection in a Canadian court and its request for the early termination of several gas supply agreements in Colombia, including Cerro Matoso's contract, which is valid through 2029.
Cerro Matoso warned that the reduced gas supply would force a partial suspension of certain operating processes and could, within days, compel it to halt one of its two production lines if the restriction persists or worsens-potentially slashing output by half.
The mine has a designed annual production capacity of approximately 45,000 to 50,000 tons (nickel content included), though actual output typically ranges between 35,000 and 41,000 tons due to variations in ore grade. In fiscal year 2025, actual production stood at 37,100 tons. As one of the world's largest lateritic nickel mines, Cerro Matoso accounts for roughly 10% of global ferronickel production and 4% of total global nickel supply.
Cerro Matoso, owned by CoreX Holding and situated in Colombia's northern Cordoba province, stated that Canacol had lowered gas deliveries to 7,000 MMBtu per day starting July 1-a 55% cut from the contracted volumes.
The miner attributed the reduction to Canacol's recent filing for creditor protection in a Canadian court and its request for the early termination of several gas supply agreements in Colombia, including Cerro Matoso's contract, which is valid through 2029.
Cerro Matoso warned that the reduced gas supply would force a partial suspension of certain operating processes and could, within days, compel it to halt one of its two production lines if the restriction persists or worsens-potentially slashing output by half.
The mine has a designed annual production capacity of approximately 45,000 to 50,000 tons (nickel content included), though actual output typically ranges between 35,000 and 41,000 tons due to variations in ore grade. In fiscal year 2025, actual production stood at 37,100 tons. As one of the world's largest lateritic nickel mines, Cerro Matoso accounts for roughly 10% of global ferronickel production and 4% of total global nickel supply.
Nickel Ore Philippine 1.3%min CIF China
Unit:USD/mt
China ferronickel producers' inventory to production ratio statistics by province by month
Unit: %
