What is a mining title in Colombia?

If you are interested in the mining sector at all, you have probably heard of the concept of a mining title. In this article we explain what exactly this concept is and how a Colombian citizen can obtain a mining title.

Definition of a mining title in Colombia

A mining title is defined as the right, granted by the state, to extract and market a mineral in a particular sector. A mining title has a defined surface area and is granted for a particular mineral or minerals. Mining titles can be owned by a citizen, a group of citizens, or a legal entity. There are many types of mining titles, including:

• Concession contract.

• Concession contract with differential requirements.

• Formalization of traditional mining.

• Special reserve area.

• Temporary authorization.

• Indigenous or black community mining areas.

Since all minerals in Colombia are owned by the state, the possession of a mining title is considered a contractual link with the state.

What happens to the owner(s) of the land where there is a mining title?

The mining title holder has no rights over the land where his mining title is located, meaning that if the landowner does not wish to allow the mining operation, then it will not be possible to carry it out. The only right that the mining title holder has is to extract and sell the minerals, however, that does not give him the right to enter a piece of land without permission from the landowner.

The relationship between a mining title and land ownership can be confusing and difficult to understand, one way to understand this situation is through the following statement:

Owning land in Colombia does NOT grant the right to mine on it, in the same way, having a mining title does NOT grant rights over the land.

This means that for a mining operation to take place, there must be an agreement between the landowner and the mining title holder. It is also possible that the landowner is simultaneously the owner of the mining title, in which case it will not be necessary to negotiate an agreement.

How can I acquire a mining title?

Colombian citizens have the possibility of requesting a mining title in any area susceptible to mining (remember that not all territory is susceptible to mining). To request a mining title, it is enough to complete a procedure, which can be done completely digitally on the website of the National Mining Agency. However, the fact of requesting a mining title does not mean that it will be approved. A request for a mining title will be evaluated by the National Mining Agency (ANM), and it will be this institution that will decide whether the request is approved or rejected.

Now, what requirements must be met to obtain a mining title? These requirements are grouped into three categories:

1. Financial capacity: the proponent must demonstrate the financial capacity to finance the mining operation. This is done by submitting financial documentation and presenting the minimum exploration program (Form A).

2. Technical suitability: the proposed mining title must be technically feasible. For example, the requested area must not overlap with other titles or with areas where mining is prohibited.

3. Legal capacity: the proponent must demonstrate having the legal capacity to have a contractual relationship with the state.

Applying for a mining title is a process that must be carried out with the utmost care and preparation, otherwise we run the risk of being rejected and losing the investment made. At GEOLANEL SAS we provide advisory services when applying for a mining title to ensure that said application will be successful and approved. If you want to know more about our advisory services for mining projects, do not hesitate to contact us.