Govt. Sends New Royalties Bill to Congress

- Monday, October 1, 2001

Govt. Sends New Royalties Bill to Congress

Colombia's government sent a new bill to Congress aimed at cutting royalty payments on mining and hydrocarbon projects, Bogota daily La Republica reported.

A previous bill was struck down by the country's constitutional court after irregularities were detected in its passage through parliament.

The new bill, tagged as "urgent," fixes mine-mouth royalty payments on coal production of over 3Mtpy at 10%, and 5% on smaller deposits. The royalty on nickel would be 12% and on iron and copper 5%. Precious stones would be subject to royalties of 1.5%.

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The legislation also stipulates that 30% of resources designed to develop the mining sector would be administered by the Geoscience, Mining and Chemical and Mine Engineers Institute and the other 70% by state mining company/regulator Minercol.