Colombia
Legislation
- Mining Code 2001
- Environmental Law 1993
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
| Regulatory Risk Analysis | Subscribe |
Colombia’s mining code is in many respects a model civil law code, that has an approach to regulating the sector which is not dissimilar to that of Chile. The law is well thought out and incorporates many principles which will be viewed positively by potential investors – who may look to seek comfort in concession based systems which protect from future legal changes. However, whilst it is true that recent court decisions have found in favour of the sector, Colombia still shares many challenges with respect to environmental groups and indigenous communities with jurisdictions such as US, Canada and Australia. These challenges should not be underestimated regardless of the relatively favourable mining code and in light of the 2022 election result.
Contents
Legislation
- Mining Code 2001
- Environmental Law 1993
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Colombia has a growing mining sector and considerable mineral wealth, with many areas of the country not yet explored. The industry plays a key role in the country’s economy and efforts have been made in recent years to attract increased foreign investment. Information from Colombia’s National Mining Agency (ANM) states that natural resources made up 22% of the country’s total exports in the first half of 2021. Traditionally, coal has been the primary export and remains so at the present time – representing more than 50% of mining exports and being the largest GDP contributor of all minerals. This is closely followed by gold, though ferronickel, emeralds, iron, nickel, salt, platinum and silver are also being produced.
Mining companies in the region have experienced complications in the past with social, community and environmental challenges, with citizens utilising consultation rights to hold referendums which seek to block mining projects and prevent them from progressing. The right of consultation stems from the country’s constitution, however recent court decisions have ruled that local communities do not have a veto power over mining projects. Prior to the 2022 election, the government had also been keen to develop the sector, benefit from the green energy transition and position Colombia as an attractive option in Latin America. However, it seems likely that such sentiments may change given the outcome of the election.
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