Mining with a responsible vision

7th Forum on Responsible Mineral Supply Chains, OECDParis, FranceMay 28 2014

Agenda

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ANM

Recent performance of the mining sectorRecent performance of the mining sector

Mining PolicyMining Policy

Final RemarksFinal Remarks

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ANM

Recent performance of the mining sectorRecent performance of the mining sector

Mining PolicyMining Policy

Final RemarksFinal Remarks

Agenda

The economic contribution of mining

USD$1 out of USD$6 of exports is mining

3.43.6

4.34.7

4.4

5.05.6

6.1 5.7

GDP: a sector in expansion

4.35.2

6.37.4

8.2

9.4

12.5

10.0

12.5

The Mining and Energy sector – an ally of development

Source: AHN, ANM, MME & MHCP.

2,5

3,5

5,3 5,3

Royalties: resources for development Fiscal revenue

6

Investor confidence in the mining sector remains dynamic

FDI in the sector has recently maintained an upward trend. In the year 2013, FDI in the mining sector grew by 26%.

Mining Production Facts

Source: Ministry of Mines and Energy

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ANM

Recent performance of the mining sectorRecent performance of the mining sector

Mining PolicyMining Policy

Final RemarksFinal Remarks

Agenda

Our bet is to make use of our resources from the perspective of 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

Government Structure for the mining sector

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

• 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

Actions for mining formalization

Formalization road map

Formalization road map

Be legal

Join forces and

formalize

yourselves

Train

yourselves

Be productive

INNOVATE

Keep Going

1st GOAL2nd GOAL

3rd GOAL

4th G

OAL

5th GOAL6th GOAL

Min

ing

title

Tech

nica

l an

d as

soci

ative

sup

port

Capa

city

bui

ldin

g

Asso

ciati

ve a

nd e

ntre

pren

euria

l t

echn

ical

st

reng

then

ing

Reso

urce

s an

d in

centi

ves

for f

orm

aliz

ation

MO

NIT

ORI

NG

Inter institutional coordination Social inclusion and development

Formalization policy

Formal Mining

TOLIMA

VALLE DEL CAUCA

RISARALDA CHOCO

SANTANDER

NARIÑO

ANTIOQUIA

Formalization Pilot Projects

Towards formalization

Actions taken to address barequeo or alluvial mining

Objetive

Towards formalization

Mining development and environmental preservation

• 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

Social Dialogue and Management

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)

We are committed to the adoption of international standards

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• Good practices: • Social commitment• Sustainable

development• Transparency• Labor and work safety• Mine closure

Productivity + Responsibility + Development

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ANM

Recent performance of the mining sectorRecent performance of the mining sector

Mining PolicyMining Policy

Final RemarksFinal Remarks

• 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 Conclusions

Mining authorities, mining companies and associations are

committed to promote responsible practices in the mining industry