NewsFlash: 390 

Natural Resources and Environmental Law 

New model of the mining concession agreement

The ANM identified and reserved new areas with potential for mining activities in Colombia  

On July 14, the National Mining Agency ("ANM") issued Resolution No. 394 of 2017 "which establishes and adopts the new model of the Standard Mining Concession Agreement (Contrato Único de Concesión Minera) and takes other determinations" (the "Model"). 

The Model aims to adjust new mining concession agreements to the rules currently in force concerning mining matters, the rulings of the high courts related with the powers of territorial entities, the new labour and environmental requirements for mining activities and the requirements regarding public hearings and participation of interested parties. 

In that sense, in accordance with the judgments of the Constitutional Court, the new of the Model sets forth the precedent steps that must be fulfilled prior to executing the concession agreement. The most salient are of them are: (i) a meeting between the mayor of the municipality and the ANM to agree upon "concertation terms" (acta de concertación) that must identify the areas susceptible of having mining potential, whereby the mayor must undertake to incorporate the mining component into the territorial plans of the municipality; (ii) a public hearing with the participation of third parties interested in the development of the mining project; and (iii) confirmation that the new labor and environmental requirements are complied with for the mining activities established by means of Resolution 143 of 2017,  through the filing of the Minimum Exploratory Program. 

On the other hand, the Model expressly includes the procedure set forth in article 82 of the Mining Code that provides that at the end of the exploration period, the concessionaire must return the areas that will not be occupied by mining operations during the production period. The resulting area will be registered before the National Mining Registry. In addition, the Model incorporates Resolution 831 of 2015, which requires that evidence be provided concerning the economic capacity to comply with the agreement´s obligations of an assignee in order to complete an assignment process. 

Finally, in the past, any changes to the work program for construction of mining facilities and the development of mining activities could be implemented by simply giving notice of the relevant change to the mining and environmental authorities. The new Model now provides that the concessionaire must obtain the prior approval of the mining and environmental authorities to implement any changes to the work program. 

 

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