The Business Year Special Report
Andrea Cárdenas Valencia, Executive Director, Agency of Regulation and Control of Mining (ARCOM)
• 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. ✖