Colombia looks to recover $181.5m in alleged unpaid royalties from South32

Colombia has launched an investigation over alleged unpaid royalties of 619-billion pesos ($181.5-million) from iron and nickel production at Australian miner South32’s Cerro Matoso mine between 1982 and 2012, the country’s comptroller said Wednesday.

According to initial findings the Australian miner applied incorrect discounts and deductions to the detriment of the Andean country’s resources, the comptroller said.

"An investigation has been opened following an audit and preliminary inquiry because there are strong concerns about whether royalties which belong to the Colombian state are being adjusted correctly or incorrectly," vice-comptroller general Ricardo Rodriguez said in a statement.