Cerro Matoso is reducing ferronickel production in the Córdoba department of Colombia due to a critical shortage of natural gas [1].

The situation threatens one of the nation's primary industrial assets. A complete halt in operations could result in millions of dollars in losses for Colombia and jeopardize local employment [3].

The production crisis stems from a decision by Canacol Energy to end most of its gas-supply contracts [4]. This move directly impacts the plant's ability to power its furnaces, as Cerro Matoso depends on Canacol Energy for approximately 80% of its natural gas needs [4].

Reports regarding the severity of the impact vary. Some sources said that the plant faces a genuine risk of total closure due to the supply decision [1]. Other reports said that while the plant is currently reducing its output, it has not yet ceased operations entirely [2].

The ferronickel plant remains a central component of the regional economy in Córdoba. The potential for a full shutdown has raised concerns regarding the stability of the supply chain, and the resulting economic impact on the surrounding community [3].

Industry observers said that the reliance on a single primary supplier for the vast majority of fuel creates a significant operational vulnerability. Without a new agreement or an alternative energy source, the plant's capacity to maintain standard production levels remains compromised [4].

“Cerro Matoso depends on about 80% of its natural-gas needs from Canacol Energy”

This dispute highlights the fragility of Colombia's industrial energy infrastructure. When a primary producer of a strategic mineral like ferronickel relies on a single supplier for 80% of its fuel, any contractual disagreement becomes a national economic risk. The outcome of this shortage may force the Colombian government or the plant to accelerate a transition toward energy diversification to avoid future production halts.