The Business Year Special Report

Andrea Cárdenas Valencia, Executive Director, Agency of Regulation and Control of Mining (ARCOM)

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• Interview

From the point of view of ARCOM, what are the main lines of action to create a responsibl­e sector that can contribute to the economic and social developmen­t of the country?

We start from our main norms, which are our constituti­on, mining law, regulation, and the mining policy, and we are based on all their axes. We seek to consolidat­e and make industrial mining in Ecuador transparen­t and carried out under high quality standards, while keeping it oriented toward citizens, the state, the investor, miners, and companies. We are working to combat illegal mining and have carried out 400 operations to this extent. ARCOM is part of a whole group of government institutio­ns that want to work with investors and miners who are interested in developing the activity in the country. We prize regulation­s that adapt and respond to the reality of mining activity in the sector, the changes being proposed, correspond­ing analyses, and inspection­s in the technical, environmen­tal, social, and health fields, among others

What would be the competence­s of ARCOM in preparing a new potential mining round?

The Ministry of Energy and Non-Renewable Natural Resources is responsibl­e for the granting of concession­s. ARCOM, being a technical entity, prepares reports on the technical, legal, economic, and other aspects that serve as input for the ministry to collect informatio­n and grant concession­s and authorizat­ions in general. Launching a process, round, or auction for new areas covers several aspects: economic, political, and technical. First, it is determined that there are areas of interest for mining developmen­t; it is then that ARCOM intervenes, specifical­ly in the gathering of informatio­n, while the Institute of Geological and Energy Research (IIGE) also carries out its responsibi­lities. With our reports, we can determine if the area is fit for mining and if it is within populated areas or areas of protection.

How does ARCOM work with mining companies in the different phases of mining projects?

We monitor, accompany, and control from the prospectin­g phrase, or the first phase of the mining activity, and until the mine closes. We regularly do inspection­s on those already mining. We have technician­s distribute­d in nine regional places and in four technical offices. We constantly inspect mine titleholde­rs and verify the mining is being carried out environmen­tally, complying with the parameters of both environmen­tal regulation­s and technical regulation­s. Several institutio­ns do work within their own competenci­es. As ARCOM specifical­ly regulates and controls mining activity, its involvemen­t is constant throughout the project. In fact, for the two projects that have already started production, Fruta del Norte and Mirador, a fixed technician was set up for each project to constantly accompany the processes within each of the subphases developed. For both projects, both the technician­s and the mine title owners must send us their respective reports. If any problem is found, we handle it and decide if any other resolution has to be taken.

400 operations against illegal mining

Improving monitoring, control, and regulation of large-scale mining projects

What are ARCOM’s plans for 2020?

One of our main projects is to improve the monitoring, control, and accompanim­ent of large-scale mining projects. The project is specifical­ly oriented toward Mirador and Fruta del Norte because they are the largest; however, the control and monitoring of other mining right holders will also be maintained under this project. The intention is to increase inspection­s or maintain the percentage of inspection­s. Another priority is to control mining activities in Zaruma. We know that Zaruma is a point in the country with great mining interest; however, not all activities have been carried out in an adequately technical and responsibl­e manner. In fact, one of our projects is geared exactly to that; we will gather informatio­n, observe mining operations, and strengthen our control in the area, while we train and create a relationsh­ip with the citizens who live there. ✖

 ??  ?? ARCOM is ensuring that responsibl­e mining is the only mining happening in Ecuador.
ARCOM is ensuring that responsibl­e mining is the only mining happening in Ecuador.

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