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The Mineral Industry of Colombia in 2014

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The Mineral Industry of Colombia in 2014 2014 Minerals Yearbook COLOMBIA U.S. Department of the Interior October 2017 U.S. Geological Survey THE MINERAL INDUSTRY OF COLOMBIA By Susan Wacaster In 2014, the mineral sector in Colombia continued to be exploitation licenses. Decree 2655 remained the applicable dominated by the coal, natural gas, nickel, and petroleum law for mining titles issued between December 23, 1988, and industries. Besides being 1 of the top 10 nickel-producing August 17, 2001. In 1987, the MME issued Decree 1335, which countries in the world, Colombia produced other metallic contained health and safety regulations for underground mines, mineral commodities, including copper, gold, iron ore, and and in 1993, the Ministry issued Decree 2222, which contained crude steel, some of which were produced in regionally similar health and safety regulations for open pit operations. In competitive quantities. Colombia was also the only 1994, the Government made its first attempt to legalize artisanal platinum-producing country in Latin America. The country mining for those miners who had worked without licenses up was not a global leader in the production of hydrocarbons, but until November 31, 1993, by issuing Decree 2636. The decree its coal production accounted for 1.5% of the world total, and allowed for artisanal mining if the miner submitted, free of its crude petroleum production, 1.2%. Its yearend reserves of charge, a request for a license, permits, or contracts; the Decree anthracite and bituminous-grade coals accounted for 0.8% of also allowed for an exemption of surface rent for properties the world total. In 2014, Colombia’s real gross domestic product that were smaller than 10 hectares. Under the Mining Law of (GDP) increased by 4.6% compared with that of 2013, making it 1988, small-scale miners were obliged to provide reports on one of the fastest growing economies in Latin America (BP p.l.c., exploration results, investment, and work plans only when 2015, p. 6, 8, 30, 32; Departamento Administrativo Nacional de the exploration license expired, but medium- and large-scale Estadística, 2015a). operations were obliged to provide periodic reports (Ministerio de Minas y Energia, 2014, p. 10; Cárdenas Martínez, 2015). Minerals in the National Economy The Government issued a new Mining Code in 2001, Law 685. Among other changes, the new law grants In 2000 through 2014, the reported annual contribution to the unlicensed miners working on state-owned land 3 years to GDP from the extraction of mineral fuels and the exploitation register with the national mining cadaster in order to legalize of mines and quarries fluctuated between about 6% and 8%. In their operations. The new law introduced the concept of 2014, the reported value contributed to the GDP from mineral special reserve areas for mining. The law defines these reserve production was nearly unchanged from that of 2013 at about areas as places where geologic and mining studies will take $19 billion1 and accounted for 7.8% of the GDP. Production place and which will become available for communities that of mineral fuels was valued at $13.5 billion in 2014 compared practice artisanal mining. In these areas, cooperatives and with $14.7 billion in 2013; coal, $3.6 billion compared with traditional mining groups are given priority with regard to the $3.7 billion in 2013; nonmetallic minerals, $911 million granting of mining concessions. Under the new Mining Law, compared with $882 million in 2013; and metallic minerals, other special privileges given to mining cooperatives include $899 million compared with $1.1 billion in 2013 (Departamento financing; technical assistance and training; tax credits and Administrativo Nacional de Estadística, 2015a). exemptions; and business, legal, and financial training. The new Mining Law and a related penal code describe an obligation Government Policies and Programs to control illegal mining, the powers of municipalities to carry out decommissioning and suspension of illegal operations, and The Ministry of Mines and Petroleum was created by the confiscation of minerals found to be traded or transported Decree 968 of May 18, 1940, to administer the country’s without invoices or proof of the mines from which they came. mines, petroleum resources, and undiscovered resources, as The Mining Law of 2001 recognizes mining operations that are well as its national laboratory analysis and research—matters small and shallow, operate intermittently, do not produce greater that had previously been handled by the Ministry of National than 250 metric tons per year (t/yr) of material, and rely on Economy. In 1968, the structure of the agency was expanded hand-operated tools and human power (Ministerio de Minas y to cover primary energy resources. In 1974, the administrative Energia, 2014, p. 11 13). organization was again revised by Decree 636 of April 10, 1974, By 2001, the MME was composed of special administrative and the name was changed to the Ministerio de Minas y Energía units, including the Unidad‒ de Planeación Minero Energética [Ministry of Mines and Energy] (MME) (Ministerio de Minas y [Mining and Energy Planning Unit] (UPME) and the Comisión Energía, 2015a). de Regulación de Energía y Gas [Energy and Gas Regulatory Under Decree 2655 of 1988 (the former Mining Law) the Commission] (CREG). Related public institutions included right to explore and exploit national mineral resources was the Instituto de Investigación e Información Geocientífica, authorized through the issuance of exploration licenses and Minero Ambiental y Nuclear [Institute of Investigation and Geoscientific Information, Environmental and Nuclear 1Where necessary values have been converted from Colombian pesos Mining] (INGEOMINAS); the Instituto de Planificación y (COP) to U.S. dollars (US$) at an annual average exchange rate of Promoción de Soluciones Energéticas [Institute of Planning and COP2,000.68=US$1.00 in 2014 and COP1,868.9=US$1.00 for 2013. COLOMBIA—2014 8.1 Promotion of Energy Solutions (IPSE); and related companies, Production including Empresa Colombiana de Petróleos (ECOPETROL); Empresa Colombiana de Gas (ECOGAS), and Empresa With the exception of copper and gold, production of all Nacional Minera Ltda. (MINERCOL), among others (Ministerio reported metallic minerals decreased by between 13% and de Minas y Energía, 2015a). 38% in 2014 compared with output in 2013. Reported copper In 2003, the Agencia Nacional de Hidrocarburos [National production increased sixfold to 4,390 metric tons (t) from Hydrocarbon Agency] (ANH) was created to bring about 725 t in 2013, all of which came from Atico Mining Corp. comprehensive management of hydrocarbon reserves. In 2004, of Canada’s El Roble Mine as the mine had commenced INGEOMINAS was restructured and became the Instituto commercial operation in 2013 and completed a mill capacity Colombiano de Geología y Minería [Colombian Institute of expansion in 2014. Gold production increased by 2.3% Geology and Mining] (retaining the same acronym for its name, compared with that of 2013. Among the industrial minerals INGEOMINAS). The agency was charged with performing and produced, production of cement increased by 10% in 2014 promoting mineral exploration and managing exploration and compared with that of 2013. Reported production of emerald exploitation activities in the country (Ministerio de Minas y decreased by 25% to 1,967 carats. Emerald production numbers Energía, 2015a). reported by the Government of Colombia represented officially In 2011, the Government released Executive Order 4131 as recorded export totals only. The reported annual volume of part of a reorganization of the country’s mining and energy mined emerald historically fluctuated, as emerald mining had sectors. INGEOMINAS’s name was changed to the Servicio in large part been done by mining enterprises that worked Geológico Colombiano [Colombian Geological Survey] privately or collectively controlled mines. The decrease in (CGS). The CGS continues to be under the administration reported emerald production in 2014 was likely owing to of the MME and is affiliated with the Sistema Nacional de continued struggles among competing interests for control of Ciencia, Technologia e Innovación [National System of Science, emerald mines following the death in 2012 of the country’s most Technology and Innovation], which was created in 2009 by powerful emerald miner (table 1). law No. 1286. The Agencia Nacional de Minería [National Mining Agency] (ANM), which is the mining authority in Structure of the Mineral Industry Colombia, was also created as a result of the restructuring in 2011. The primary responsibilities of the ANM include The majority of mines and nonfuel mineral production managing Colombia’s mineral resources and granting rights facilities in Colombia were controlled or owned by the private for exploration and exploitation; managing contracts and sector. The vast majority of exploration projects undertaken concessions; collecting and overseeing the transfer of royalties; through joint ventures and foreign investment in Colombia coordinating mine safety; and developing and implementing continued to be focused on precious and base metals in strategies to promote the exploration for and exploitation of the hydrothermally altered breccia, porphyry, vein, and volcanic country’s mineral resources (Ministerio de Minas y Energía, massive sulfide deposits. Table 2 is a list of Colombia’s major 2011; Agencia Nacional de Minería, 2013). mineral facilities. In 2013, through the passage of the Mercury
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