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    OP Gold Capital outbids Freeport in Colombia: contract terms and risks for mine planners

    October 27, 2026|

    Reviewed by Joe Ashwell

    OP Gold Capital outbids Freeport in Colombia: contract terms and risks for mine planners

    First reported on MINING.com

    30 Second Briefing

    Colombia’s OP Gold Capital has retained a 60-sq.-km copper-gold exploration block in Cesar by outbidding Freeport-McMoRan, lifting its additional payment to the state to 2.5% of production plus a 1.5% social contribution, and also secured neighbouring Block 3. The National Mining Agency signed eight copper, gold and polymetallic contracts on 9 October, with Zijin Mining taking Blocks 23 and 42 in Buriticá and Mineros Aluvial winning Blocks 17 and 18 in Antioquia. Copper Giant’s Libero Cobre unit obtained the 16-sq.-km Chaparral block in Tolima with no acquisition fee but committed to 1.5% economic and 2% social contributions on future output.

    Technical Brief

    • OP Gold’s winning bid for Block 2 raised the incremental state payment offer from 1.5% to 2.5%.
    • Eight copper, gold and polymetallic contracts were signed on 9 October with five separate companies.
    • Zijin Mining, via its South American exploration arm, secured Buriticá Blocks 23 and 42 without counterbids.
    • Carbones San Cayetano obtained Block 5 in La Guajira, while Mineros Aluvial took Blocks 17 and 18 in Antioquia.
    • Copper Giant’s Libero Cobre unit signed the Chaparral (16 sq. km) contract on 9 October after an August award.
    • Libero Cobre pays no acquisition fee but accepts an annual surface fee during exploration plus output-linked contributions.
    • Chaparral currently has no defined resource or reserve; Copper Giant relies solely on unverified government geological data.

    Our Take

    Freeport-McMoRan’s loss of these Colombian copper and gold blocks comes as our other coverage shows it leaning heavily on large, complex assets like Grasberg in Indonesia to sustain output, which may increase its sensitivity to permitting or operational setbacks elsewhere.

    With molybdenum also listed among the targeted commodities in Colombia and our database flagging a sixth straight annual moly deficit, any molybdenum-bearing discoveries on these blocks could command outsized strategic value relative to more conventional copper-only plays.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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