Wednesday, March 25, 2015

With the Article 22 of the National Plan of Development,
the Drummond wins and the state loses.


Image result for drummond mining pics

The National Development Plan in Colombia which is pending in Congress, includes an article that seeks to automatically extend the contracts of mining contribution not agreed to have extensions.
This was denounced by House Representative for the Party of the U of the Department of Cesar, Christian José Moreno Villamizar, who said that the adoption of Article 22 of the Law Project on the National Development Plan, makes the Drummond, a coal multinational company operating in Cesar, wins and while the nation loses.
The parliament representative recalled that in mining matters the Colombian government signed the contract 078 1988, which does not express possibilities for extension.

Moreno Villamizar explained that today, in the context of the discussion of the bill 200 2015 of the Camera by which the National Development Plan 2014 - 2018, "All for a New Country", “is issued seeks to amend the Article 101 of the Act 685 of 2001 through Article 22 of the bill that aims to bring integration of non-surrounding areas to extend the time initially agreed to a contract that has no extensions”.
Clarified the parliamentarian Moreno Villamizar that the effects of this article, if approved as proposed, are:
- Loss of applicability of the clause that makes a mine, its equipment and infrastructure, be returned to the state at the end of a mining contract.
- Loss of the ability to negotiate more favorable conditions for the State in mining operating or that the state can operate it directly.
- Extension of a contract detrimental to the state.

Harmful Contract
"The state contract with Drummond on Pribenow or La Loma mine has been detrimental because the alleged major profits could not be generated without this formula and, as it is, they have favored little favor the Colombian state" reiterated the representative Moreno Villamizar.
He recalled that the contract between the Colombian state and Drummond, on the contribution area 078-88, has a maximum duration of 30 years from the date of processing, February 23, 1989, and ends on February 22 2019, when assets revert to the State under the thirty-first clause of the contract pursuant to which no extensions were agreed, but with the possibility of integrating the areas, Drummond could extend the contract on beneficial terms.

The political leader of Party of the U denounced that the company Drummond has been since 2007 trying to convince the mining authorities to extend the contract of La Loma, which ends in 2019, either directly or indirectly by including a plan that allowed the integration of operations of all contracts until 2060. Bluntly, parliamentary Moreno Villamizar warned that according to the company, this new plan involves the natural extension of a contract that by its terms and conditions does not allow its extension beyond 2019.

Original in http://tuperfil.net/con-articulo-22-del-pnd-gana-drumond-y-pierde-el-estado/
translated by Rio Rancheria

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