On October 21, 2020, the Ministry of Mines and Energy issued Decree 1378, by means of which the differential requirements to grant concession contracts to small-scale miners and beneficiaries of the return of areas were added to Decree 1073 of 2015, in order to to encourage that, for a single time, small-scale miners and beneficiaries of the return of areas for formalization can access a concession contract based on the fulfillment of the differential requirements. This, without prejudice to the fact that they may later apply to obtain more contracts, complying with the requirements of the ordinary regime.
The Decree defines small-scale miners as those who meet the following conditions:
- Not be holders of a valid mining title.
- Require a concession of up to 100 hectares.
- That its annual production corresponds to the volume established, according to the type of mineral, in literal c of article 2.2.5.4.4.1.1.3 of the Decree.
Likewise, the beneficiaries of the return of areas for formalization are understood as the small miners in favor of those who operate the return of areas or who require to be relocated due to environmental or social restrictions in the project’s area of influence.
Additionally, regarding the differential requirements to be met in order to present a concession contract proposal and the content of the proposal, the following are established, among others:
Submission requirements: Both small-scale miners and beneficiaries of the return of areas for formalization must comply with the following:
- Select a free area, a conversion request area, or an area to be returned in the comprehensive mining management system;
- Indicate the municipality, department and applicable competent authority according to the area;
- Indicate the minerals to include in the object of the contract;
- Include a technical annex with the minimum exploratory program together with the environmental suitability of the project; and
- Prove the economic capacity based on the differential criteria established by the mining authority.
Content of the Proposal: The contract proposal must comply with the provisions of article 2.2.5.4.4.1.2.1 in accordance with the differential terms of reference and the technical annex of literal d of said article.
Specific characteristics: If the proposal is accepted by the mining authority, the concession contract will be granted in the exploration stage with anticipated exploitation, whose validity will be the same as the exploratory period of three ( 3) years established in article 71 of Law 685 of 2001, extendable for two (2) additional years, as long as the request is justified.
Additionally, it is established that those who are beneficiaries of concession contracts with differential requirements, will receive technical support from the mining authority if requested and will also be subject to a differential examination process as applicable.
Finally, the concession contract holders may integrate the areas given in concession, without losing the benefits of the Decree, as long as the integration does not exceed the limits of hectares established as appropriate.
Likewise, for an assignee of the concession contracts to be a beneficiary of the benefits contemplated in the Decree, adequate compliance with the differential criteria must be given.