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

1. Mining with a responsible
vision
7th Forum on Responsible Mineral
Supply Chains, OECD
Paris, France
May 28 2014

2. Agenda
*
ANM
Recent performance of the mining sector
Mining Policy
Final Remarks

3. *
ANM
Recent performance of the mining sector
Mining Policy
Final Remarks
Agenda

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. 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
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. 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. *
ANM
Recent performance of the mining sector
Mining Policy
Final Remarks
Agenda

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. 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. • 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. 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. TOLIMA
VALLE DEL
CAUCA
RISARALDA CHOCO
SANTANDER
NARIÑO
ANTIOQUIA
Formalization Pilot Projects
Towards formalization

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. 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. 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. Wearecommittedtotheadoptionofinternationalstandards
17
• Good practices:
• Social commitment
• Sustainable
development
• Transparency
• Labor and work safety
• Mine closure
Productivity + Responsibility + Development

18. *
ANM
Recent performance of the mining sector
Mining Policy
Final Remarks

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. Mining authorities, mining
companies and associations are
committed to promote responsible
practices in the mining industry