“Currently there are more than $245 billion announced in investments for the Latin America extractive industry in the next five to 10 years, with special emphasis in Chile, Peru and Colombia.” assures Cecilia Jamasmie in the article Australian miners should seek business opportunities in Latin America: Government at Mining.com. However, investment opportunities in Latin America’s mining sector are available for companies anywhere willing to believe that the market itself is a gold mine.
Making the decision to explore a foreign market is the first step of the process. Though from that point, the period from prospecting to the environment-friendly closing of the mine may easily take over three decades. The second step however, involves the rightfulness, legal and environmental, that anyone who treasures their peace of mind would want to include in every step of the way.
In Colombia, the legal process is not one overwhelmed with complexity; it is not one whose completion may require any intermediaries. Such process is briefly shortened to obtaining a concession contract. A concession contract is one signed between the State and an individual who wants to carry out on their own and assume the risks of evaluations, fieldwork and state-owned mineral exploration activities executed in a specific zone in order to exploit them in accordance to Article 45 of the Law 685 of 2001, in the Mining Code. The Concession Contract has the following requirements:
1. PIN request
2. Required documents
- Basic information,
- Indicate Municipality, Department (Geographic State) and environmental authority,
and the location of the area in question,
- Describe the area object of the contract and its extension,
- Identify the mineral(s) object of the contract,
- Mention the Ethnic Groups with permanent settlements in the area or if it is partially
or completely within an indigenous, black or mixed mining zone,
- Notify if the area is partly of completely located in a restricted zone that requires authorization from another entity,
- Indicate the reference terms and environmental-mining guides that apply to the exploration work
and an economic estimate of the investment for the application of such guidelines,
- Attach a topographic map with the official technical characteristics.
3. Applicable regulations and norms.
4. Request for the Area’s Certificate of release
5. Request for the graphic report
Once the Concession Contract has been granted, the rest is a matter of doing what the experts know perfectly, begin the extraction process.
Whether you are multimillion dollar company or an investor interested in Latin American mining, assistance on obtaining the paperwork and filing for a concession contract may not be required. However, knowing the sector, and finding the opportunities available to assure successful negotiations and reaching the target markets around the world are a different story, and for that there is Acciones de la Frontera. This is the first of many articles related to one of our areas of expertise.