Aris grapples with collapse at affiliated Colombia mine

A Canadian company’s novel approach to informal mining is being put to the test after more than 20 workers were trapped by a collapse at a gold mine in Colombia.

The miners are reported to be in good health and are expected to be freed in the coming hours, according to Colombian mining authority ANM. They’ve been trapped underground since a collapse at the mine’s main access at about 11 a.m. local time Monday.

The accident took place at La Reliquia, which is one of the previously informal operations within Aris’ land holding in Segovia, Antioquia department. Aris shares fell as much as 11% and were down 5.2% at 12:37 p.m. in Toronto.

Typically, established mining companies look to expel informal miners from their properties. Instead, the firm backed by Canadian investor Frank Giustra is helping them with financing, planning and safety and then buys their gold. Such arrangements account for almost half of the gold that comes out of Segovia.

Authorities put the number of trapped miners at 25 while the company said it was 23. Aris is collaborating with ANM in the rescue.

Informal mining in South America from Bolivia to Peru is on the rise driven by record-high bullion prices. Aris’s approach — to work with local miners who may lack permits but aren’t explicitly banned or inherently criminal — contrasts with that of Zijin Mining Group, a Chinese group grappling with violent conflicts since buying the Buritica underground mine in Antioquia five years ago.

(By Andrea Jaramillo and James Attwood)