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Number 4 |
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Pillars of Colombia's
1. Mine Resources Management
2. Improvement in the productivity and competitiveness of the Mining Sector
3. Advertisement of the Mining Country |
National Mining: “On account of coal deposits which, for almost thirty years, have been exploited in the La Guajira and Cesar Departments, Colombian mining production shows an unprecedented growth.”
Mining Promotional Guide, 2007 In accordance with the National Mining Development Plan, 2007—2010, Colombia boasts a geology that facilitates mining production and development. It currently offers a wide variety of mineral products. These include both large—and—small scale production. Large scale production includes coal and nickel, while small scale production includes gold, platinum, emeralds, limestone, salt, rock phosphate, clay, silicon sand, copper, manganese, magnesite, baryta, gypsum and a variety of ornamental rocks. Production can be found in almost thirty zones, spanning two hundred municipalities with major growth and the possibility for exploration and exploitation. In these areas, mining activity has proven to be a significant support for the economic and social development of the municipalities. This generates an effect on the growth of income as well as on company quality and performance in areas of the country previously considered to be marginal and vulnerable. Although Colombia still does not possess certain variables that distinguish successful mining countries such as Canada and Australia, the industry has tended, both nationally and Departmentally, to have had a positive economic impact on indicators such as GDP, exports and royalties. The above is due to exploration and production projects involving foreign companies. Among the most outstanding of these are the following: Production Projects
Source: MME
Exploration Project
Ingeominas Bits
Source: MME It is worth mentioning that despite slow growth in the 1990s, production value has increased from 45.5 thousand million pesos to 67.4 thousand million pesos flat in 2004. This increase in mining production has meant a significant contribution by the mining sector on todayŐs GDP, which has maintained a level of 2.57 for 2007, with some exports valued at US$6.669 million. (Among the most outstanding of these are exports of coal, coke, ferronickel, emeralds and gold.) Royalties reached US$468.5 million in 2007. According to data collected by the Department of National Taxes (DIAN) for 2006 (with approximations for 2007), mining was responsible for 2.3% of the nationŐs current income. On the other hand, mining has generated rather positive Departmental development, especially in the Departments of La Guajira, Cesar and Córdoba. The most outstanding case in this context is in the Department of La Guajira “where mining has represented between 30% and 50% of the Departmental GDP in the last decade. In the same way, in Cesar, mining rose from 7.3% of the GDP in 1990 to 36% in 2005. In Cordoba, mining is the second most important economic activity after agriculture: while, at the start of the 1990s, mining contributed 18% to the DepartmentŐs GDP, this had grown to 25% in 2005. Furthermore, royalties (especially those for coal and nickel) in these Departments has highlighted an improvement in the standard of communities in the production zone. Royalties in the sub—sector are distributed as follows: Cesar 37.56%; La Guajira 34.15%; Magdalena 4.95%; Cundinamarca 0.51%; Atlántico 0.26%. In 2007, 740,000,000,000 pesos worth of mining royalties were distributed, compared with only 350,000,000,000 pesos in 2006 . These resources are distributed between Ingeominas, the National Royalty Fund and other departments. ” See Logbook Number 25, Fedesarrollo. Finally, based on the above examples, it is possible to confirm that mining in Colombia generates clear benefits for both the national economy and local economies. It creates employment, increases the demand for goods and services, boosts the income of both national and regional governments by generating currency through exports and, in various cases, the production of raw materials for different branches of local industry. The above demonstrates how mining development in these areas has meant a positive change. This growth has been thanks to active inter—institutional participation, to the integration of processes, and to participants involved, either directly or indirectly, in the advance and progress of tactics aimed at sustainable development in the mining sector. |
“One of the sectors in Colombia that attracts more foreign investment is the mining sector”
Hernán Martínez Torres |
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Design: |
Mines Direction - Energy and Mines Ministry - Republic of Colombia |