• In an event held on May 25, 2023, at the Externado University of Colombia, the Alliance for Responsible Mining (ARM) and GIZ presented an innovative tool that allows for projecting the economic profitability of small-scale mining projects

  • The tool also calculates the tax burdens resulting from operations. This tool enables miners to take appropriate actions for improvement based on the obtained results.

  • The event was attended by members of the governments of Colombia, Peru, and Ecuador, as well as academia and cooperation projects.

Developed by ARM and GIZ, this comprehensive tool offers specific estimations and tax calculations for small-scale mining in five Latin American countries. Small-scale mining often faces challenges in meeting legal and accounting requirements due to its scale and lack of financial resources. This solution aims to facilitate the transition towards responsible mining by providing small-scale miners with a simple and effective way to fulfill tax obligations and contribute to the sustainable development of their communities. Additionally, the tool provides relevant information to governments about tax burdens and revenue, enabling them to establish actions to promote mining formalization.

“The fiscal MAPE tool is a valuable instrument for both small-scale miners and governments. Miners can obtain information about the profitability of their projects over time, while governments gain insights into the revenue behavior of mining projects and how it can affect or benefit formalization”.

Jairo Cárdenas

Mining Sustainability Manager at ARM.

Experts From The Mining Sector Discuss Challenges And Solutions For Artisanal And Small-Scale Mining In The Region

Following the presentation of the fiscal calculation tool for small-scale mining, the session continued with an international panel of experts in the sector. Carlos Bermúdez from the Ministry of Mines of Colombia, Sofía Palacios from the Ministry of Mines of Ecuador, Gustavo Yáñez from the Ministry of Mines of Peru, and Jairo Cárdenas from the Alliance for Responsible Mining participated in the discussion. Also joining the conversation was Professor and Researcher Dr. Javier Torres from the Externado University of Colombia. The event was moderated by Gina D’amato, Director of ARM, facilitating a constructive dialogue on the challenges and opportunities faced by artisanal and small-scale mining in their respective countries.

During the panel discussion, participants shared experiences, exchanged ideas, and explored ways to address the present challenges in the mining industry. The importance of promoting the formalization and legalization of small-scale mining to ensure environmental protection, human rights, and the well-being of local communities was emphasized.

“We are working on a differential approach to mining communities, recognizing that each region has its particular situations according to its territory. We aim to understand their realities and facilitate formalization, permits, and licensing while supporting miners to meet the requirements for formal operation. Moreover, we seek to sustain their formalization.” 

Carlos Bermúdez

Colombian Ministry of Mines and Energy

Professor Javier Torres stressed the need to identify and understand mining communities in Colombia: “In the National Development Plan, small-scale mining is absent. The government must design a solid public policy where formalization is one of the pillars for building Colombia’s small-scale mining.”

ARM continues to lead efforts in promoting responsible practices in the mining sector, and it hopes that this new tool will serve as a stimulus to promote projects that support small-scale miners in their formalization journey and contribute to a positive transformation of small-scale mining in the region.

If you wish to watch the full panel discussion and learn more about the challenges and solutions presented by the experts, please access this link.

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