What is the Mining Audit?
Mining Auditing is a monitoring and follow-up tool used to supervise the compliance of norms and obligations undertaken through a mining agreement which mining title holders should be subjected to in order to conduct non-renewable natural resources exploration and exploitation activities. The process approach integrates documentary evaluation and verification of information collected in field visits by checking technical, legal, economic, environmental, security, and mining hygiene aspects.
If breaches of Article 112 of the Mining Code (Law 685 of 2000) are found while the mining title is being audited, the caducity or cancellation process will be initiated. Fines, penalties, and requirements will depend on the regulations and the policies established by the National Mining Agency, respecting the due process of the law. The main focus is on improvement, assistance, and preventive actions rather than on penalties as they are of last resort.
Items Evaluated during the Mining Audit Process
- Legal items: Evaluation of the whole set of activities performed by the beneficiaries of mining titles tending to fulfill legal contract provisions.
- Technical items: Evaluation of the whole set of activities performed by the beneficiaries of mining titles tending to fulfill technical contract provisions, within the terms and conditions agreed upon.
- Economic items: Verification of economic liabilities derived from the mining title such as the ground rent, payment of royalties, compensations and other considerations, as well as the management capacity the title holder has to define, reach, and evaluate its own purposes and results with the proper use of the available resources.
- Security and Hygiene: Rigorous verification of the fulfillment of the provisions ruling industrial safety and hygiene during the exploration, construction and assembly, and exploitation activities.
- Environmental items: Verification of compliance of the principles and norms of rational utilization of the environment and non-renewable resources during exploration, construction and assembly, and exploitation activities as part of an integral concept of sustainable development and socio-economic strengthening of the country, respecting the competences of the applicable authorities. Items checked within this component are related to the instruments adopted and imposed by environmental authorities for the development of mining activities, as well as the norms they are based on (Law 99 of 1993).
Any questions regarding the whole Integral Mining Audit Process may be asked at:
HotLine: 01 8000 933 833
PBX: 2201999 extension 5638