Government of Colombia - 7th Multi-Stakeholder Forum on Responsible Mineral Supply Chains

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This presentation by the Government of Colombia was given at the session on Colombian outreach efforts during the 7th Multi-Stakeholder Forum on Responsible Mineral Supply Chains held on 26-28 May 2014 in Paris.

Find out more at: http://mneguidelines.oecd.org/icglr-oecd-un-forum-paris-may-2014.htm

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Government of Colombia - 7th Multi-Stakeholder Forum on Responsible Mineral Supply Chains

  1. 1. Mining with a responsible vision 7th Forum on Responsible Mineral Supply Chains, OECD Paris, France May 28 2014
  2. 2. Agenda * ANM Recent performance of the mining sector Mining Policy Final Remarks
  3. 3. * ANM Recent performance of the mining sector Mining Policy Final Remarks Agenda
  4. 4. Theeconomiccontributionofmining USD$1 out of USD$6 of exports is mining 2.0 2.1 2.2 2.3 2.4 0 1 2 3 4 5 6 7 2005 2006 2007 2008 2009 2010 2011 2012 2013 % USDbillions Nonmetallic Minerals GDP Metallic Minerals GDP Coal GDP Share of Mining in Colombian GDP (Right Axis) 3.4 3.6 4.3 4.7 4.4 5.0 5.6 6.1 5.7 GDP: a sector in expansion 0% 5% 10% 15% 20% 25% 30% 0 2 4 6 8 10 12 14 2005 2006 2007 2008 2009 2010 2011 2012 2013 USDmillions Other minerals Emeralds Gold Ferronickel Coal Share of mining in colombian exports 4.3 5.2 6.3 7.4 8.2 9.4 12.5 10.0 12.5
  5. 5. TheMiningandEnergysector–anallyofdevelopment Source: AHN, ANM, MME & MHCP. 0.7 0.7 0.9 1.1 0.9 1.8 2.9 4.4 4.8 4.4 0 1 2 3 4 5 6 7 2009 2010 2011 2012 2013 USDbillions Mining Royalties Hydrocarbon Royalties 5,9 2,5 3,5 5,3 5,3 Royalties: resources for development Fiscal revenue
  6. 6. 6 Investorconfidenceintheminingsectorremainsdynamic 627 1,246 2,157 1,783 1,100 1,798 3,025 1,755 2,455 2,316 2,916 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2,003 2,004 2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012 2,013 USDmillones Foreign Direct Investment (FDI) % Share of Mining FDI in total FDI in Colombia (Right Axis) FDI in the sector has recently maintained an upward trend. In the year 2013, FDI in the mining sector grew by 26%.
  7. 7. MiningProductionFacts • 90% of thermal coal production is in 14 projects • 100% of nickel production comes from 1 company - Cerromatoso • 100% of iron ore production comes from 1 company - Paz del Río Large Mining Companies • 80% of mining titles have an area smaller than 500 ha • 10% of coal production • Diversified production: building materials, precious minerals, metallurgical coal and clay • Lack of technology, artisanal production, short term vision, subsistence production activities • It is necessary to apply the best practices for achieving responsible mining Small & Medium Scale Mining Source: Ministry of Mines and Energy
  8. 8. * ANM Recent performance of the mining sector Mining Policy Final Remarks Agenda
  9. 9. Ourbetistomakeuseofourresourcesfromtheperspectiveof sustainability 9 Basic requirements for getting on the path towards sustainable development • Strong institutions • Policies and execution • Coordination and articulation • Continuity and long term actions
  10. 10. GovernmentStructurefortheminingsector National Mining Agency Colombian Geological Service Monitoring Markets & Sector Planning Vice-Minister of Mines Vice-Minister of Energy Minister of Mines and Energy Mining Authority Subsoil Knowledge Mining and Energy Planning Unit
  11. 11. • Mining formalization 8 Strategic Lines • Protection of a mining title • Regulation and guidelines • Coordination for efficient management • Training • Inclusion and social development • Associations and enterprise • Resources and incentives • Information Actionsforminingformalization
  12. 12. Formalizationroadmap Formalization road map Keep Going Miningtitle Technicaland associativesupport Capacitybuilding Associativeandentrepreneurialtechnical strengthening Resourcesandincentivesforformalization MONITORING Inter institutional coordination Social inclusion and development Formalization policy Formal Mining
  13. 13. TOLIMA VALLE DEL CAUCA RISARALDA CHOCO SANTANDER NARIÑO ANTIOQUIA Formalization Pilot Projects Towards formalization
  14. 14. Actionstakentoaddressbarequeooralluvialmining Provide Technical Aid Train Characterize A large population of miners who carry out their activity through alluvial mining, making use of mercury for gold smelting processes in an anti-technical manner and in considerable quantities, by contributing to the improvement of their health and living conditions through the use of the best mining practices Objetive Towards formalization
  15. 15. Miningdevelopmentandenvironmentalpreservation • Inter-Ministry Mining and Environment Agenda Joint planning instrument for improving and facilitating a permanent dialogue with the Ministry of the Environment and Sustainable Development, seeking coherence and articulation in public policy decision-making. • Regional mining and environmental roundtables Inter-sector coordination and institutional presence for handling illegal mining problems and environmental pollution due to regional mining activities. • Sustainable Policy for the Colombian Mining and Energy Sector (PSSMEC) With the objective of building a common framework for organization (strategic, structured, long term) that will allow the sector to integrate its results, measure progress and make long term projections of its will to achieve sustainability, making sure that there is a balance between economic growth, environmental care and social well-being. • Climate change Promoting the use of methane gas from mining operations, which has been handled for the safety reasons, for the purposes of self-generation. Development+Enviroment+ Sustenaibility
  16. 16. SocialDialogueandManagement Participation + Inclusion + Rights • Characterization of the socio-economic and cultural conditions of the areas where operations are carried out • Social dialogue – reputation building • Identifying risks and opportunities • We support the Social Responsibility programs of Companies – Social Management of Projects • 6 regional roundtables for the Permanent Social Dialogue with mining communities (Chocó, Antioquía, Risaralda, Caldas, Cundinamarca - Boyacá and Bolívar)
  17. 17. Wearecommittedtotheadoptionofinternationalstandards 17 • Good practices: • Social commitment • Sustainable development • Transparency • Labor and work safety • Mine closure Productivity + Responsibility + Development
  18. 18. * ANM Recent performance of the mining sector Mining Policy Final Remarks
  19. 19. • The mining sector is undergoing expansion and its contribution is significant for the social and productive development of the country. • During the first decade of this century, sector growth took place in a disorganized manner, which overwhelmed the existing institutional capacity. • Sustainable development implies economic development, resources for productive development, environmental balance, ecosystem preservation and intergenerational equity as well as social prosperity, poverty reduction, dignified employment and formalization, respecting and promoting cultures and communities. • The vision of sustainability will only become reality by organizing the sector. Between 2011 and 2012, a profound institutional reform was undertaken, which has led to important results in the administration of resources, mining formalization and the adoption of good practices within the industry. • We are working in an inter-institutional coordination in order to achieve an equilibrium between mining development and environmental preservation. • Colombia is promoting responsible mining in accordance with the world’s best practices Conclusions
  20. 20. Mining authorities, mining companies and associations are committed to promote responsible practices in the mining industry

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