Colombia is now attracting attention as a hot spot for foreign investment. As a visionary company, Mitsubishi Corporation (MC) began its operations in Colombia back in the early 60s, as it looked to support the export of green coffee beans to Japan. In the 70s, the power plant business emerged as an important segment for MC, thanks to strong growth in Colombia. By the end of the 60s, MC had made its first investment, taking a stake in Melco de Colombia (MELCOL), a joint venture with Mitsubishi Electric that supports in the manufacture, sale, installation and maintenance of elevators and escalators in Colombia and across Latin America. Then in 1989, MC invested in Industrias Aliadas S.A., a company with a strong customer focus that has developed varieties of instant coffee using Colombian coffee beans.
After such successful experiences, subsequent investments were made in a number of enterprises, including Suleasing International, a company specialized in cross-border lease operations and financial structuring, operating in Colombia, Brazil, Mexico and other Latin American countries; Surenting, Colombia's leading company in the field of vehicle operating leases and fleet management services; and Holasa (today handled by Metal One), a processing company of tinplate and tin-free steel with markets in Colombia, Ecuador, Venezuela, Peru, and Central American countries.
Today MC's strategy is focused on enhancing business relationships with influential economic groups in Colombia and expanding its coffee business in Japan, Europe and the U.S. by strengthening relationships with suppliers and supporting the businesses of MC's joint ventures; ultimately, these efforts aim to create opportunities in Colombia and throughout the region.
For a variety of reasons, exploration for hydrocarbons and metals was limited in Colombia over past decades; in fact, only 15% of the country has been surveyed for these types of resources. But things have changed dramatically in recent years as security has improved and schemes for regulating investment have been made more flexible. Perhaps no other country in Latin America has seen such an exclusive list of companies either landing for the first time or increasing their exposure-companies such as BHP Billiton, Rio Tinto, CVRD, Glencore, AngloGold, Petrobras, BP, ExxonMobil and Shell. Amidst unrest in the region, companies now appreciate that Colombia is a good place for investment.
The coal mining industry, on the other hand, is already highly developed. Colombia is the world's fourth largest producer of steam coal, producing over 50 million metric tons annually. Colombia is also home to Cerrejon, one of the world's largest open pit mines. Recent price hikes for fuels have spurred new investment and companies traditionally only engaged in coal trading have moved to secure positions upstream.
In 2001, the Colombian Government promoted a law mandating oxygen enrichment of gasoline totaling 10% by volume. The purpose of this law was to stimulate agricultural development, increase employment, and reduce dependence on fossil fuels. Today, five facilities are already producing ethanol from sugar cane and total production is over one million liters per day. New facilities to produce ethanol from sugar cane, sugar beets and sweet sorghum are already in the pipeline and production is expected to double between 2006 and 2007. In the future, the ratio of alcohol in gasoline may be raised to 25% as more facilities are brought online.
Extensive cultivation of African palm is taking place and 35 different plants processing palm oil will serve as bases for biodiesel production. The Ministry of Mines will set up the regulatory norms for biodiesel and at least five biodiesel production facilities have already been established. With a U.S.-Colombia free trade agreement now in place and port infrastructure being enhanced along the Atlantic and the Pacific, Colombia may be exporting ethanol and biodiesel before too long.
Originally a cultural center used by Colombia's native peoples before the arrival of the Spanish, the San Agustin Archeological Park contains several sites with distinctive statues, sculptures and carvings. The first vestiges of the site were accidentally uncovered by people searching for gold.
The park, located Southwest of Bogota in the Department of Huila, covers an area of 500 square kilometers and is considered the largest pre-Columbian site in South America. The statues seem to represent mythical and real creatures, perhaps gods and actual men. There are about 500 statues and tombs in the area, clustered in groups on both sides of the Magdalena River. Some statues have fierce expressions and mouths like jaguars; others resemble birds, snakes, monkeys, frogs and eagles. The jaguar figure is thought to be associated with a religious leader called Chaman, who could transform himself into a jaguar. Today, the valley and mountains of the San Agustin region are also very famous for coffee cultivation, producing a classical lyric coffee of intense aroma with hints of chocolate, caramel, and fruit that is popular around the world.
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