Aris Mining and Colombia Government Forge Long-Term Security Agreement Ending ICSID Dispute
In a significant development for the mining industry, Aris Mining Corporation has announced a long-term agreement with the government of Colombia, effectively concluding the ICSID arbitration initially initiated by Gran Colombia Gold Corp. back in May 2018. This historic agreement marks a progressive step toward fostering collaboration and sustainability in the mining sector, reinforcing the company's commitment to responsible mining practices in Colombia.
The settlement agreement, spearheaded with the National Agency for Legal Defense of the State (ANDJE), facilitates the termination of ongoing arbitration proceedings under the Canada-Colombia Free Trade Agreement. Aris Mining’s CEO, Neil Woodyer, expressed satisfaction with the resolution, highlighting the importance of dialogue over litigation. By choosing to forgo a legacy cash claim and instead focus on a cooperative approach, both parties have symbolically paved the way for a stronger partnership.
Notably, this settlement is the first of its kind in Colombia, setting a precedent for future investor-state disputes. The agreement demonstrates a shared commitment between Aris Mining and the Colombian government to enhance security and promote the development of sustainable mining practices that benefit local communities.
The settlement consists of several pivotal elements:
1. Termination of ICSID Arbitration: The arbitration proceedings have officially ended without any financial payments being exchanged. This illustrates the mutual intent to establish comprehensive obligations rather than financial transactions.
2. Pillar Agreements: Three “Pillar Agreements” were established, focusing on formalization in the Marmato area and collaboration with the National Police and Ministry of Defense. These agreements indicate a commitment to ensuring that mining operations conform to regulatory standards while prioritizing community welfare.
3. Support for Legal Processes: Aris Mining will engage with the Attorney General's Office, bolstering ongoing legal and enforcement processes that safeguard the company's operations and workforce safety.
4. Environmental Compliance: There will be collaboration with CORPOCALDAS, the regional environmental authority, assuring adherence to mining regulations in Marmato and the enforcement of necessary compliance measures.
The agreements are structured to remain effective for ten years, overseen by a Joint Representatives Committee composed of delegates from both Aris Mining and ANDJE, ensuring transparency and effective implementation. This long-term perspective aims to foster growth and innovation within the mining sector while addressing environmental and social responsibilities.
Aris Mining, which emerged from the merger of GCM Mining and Aris Gold in 2022, operates two underground gold mines in Colombia: the Segovia Operations and the Marmato Complex. These mines together contributed to a production rate of 210,955 ounces of gold in 2024, with ambitious targets aiming for 500,000 ounces annually as expansions progress.
Further, with ongoing projects such as the Toroparu gold project in Guyana and the Soto Norte joint venture, Aris Mining is well-positioned for transformational growth in the wake of this settlement. The forward-looking strategies laid out promise not only to enhance Aris Mining's operational capacity but also to contribute positively to the socio-economic fabric of the regions it operates in.
In summary, the agreement between Aris Mining and the Colombian government highlights a shift toward partnerships in the mining industry that prioritize sustainable development, community engagement, and environmental stewardship. This cooperative model sets a new standard for resolving investor-state disputes, potentially influencing similar agreements in the future across various economic sectors.
The Settlement Agreement
The settlement agreement, spearheaded with the National Agency for Legal Defense of the State (ANDJE), facilitates the termination of ongoing arbitration proceedings under the Canada-Colombia Free Trade Agreement. Aris Mining’s CEO, Neil Woodyer, expressed satisfaction with the resolution, highlighting the importance of dialogue over litigation. By choosing to forgo a legacy cash claim and instead focus on a cooperative approach, both parties have symbolically paved the way for a stronger partnership.
Notably, this settlement is the first of its kind in Colombia, setting a precedent for future investor-state disputes. The agreement demonstrates a shared commitment between Aris Mining and the Colombian government to enhance security and promote the development of sustainable mining practices that benefit local communities.
Key Components of the Agreement
The settlement consists of several pivotal elements:
1. Termination of ICSID Arbitration: The arbitration proceedings have officially ended without any financial payments being exchanged. This illustrates the mutual intent to establish comprehensive obligations rather than financial transactions.
2. Pillar Agreements: Three “Pillar Agreements” were established, focusing on formalization in the Marmato area and collaboration with the National Police and Ministry of Defense. These agreements indicate a commitment to ensuring that mining operations conform to regulatory standards while prioritizing community welfare.
3. Support for Legal Processes: Aris Mining will engage with the Attorney General's Office, bolstering ongoing legal and enforcement processes that safeguard the company's operations and workforce safety.
4. Environmental Compliance: There will be collaboration with CORPOCALDAS, the regional environmental authority, assuring adherence to mining regulations in Marmato and the enforcement of necessary compliance measures.
Future Outlook
The agreements are structured to remain effective for ten years, overseen by a Joint Representatives Committee composed of delegates from both Aris Mining and ANDJE, ensuring transparency and effective implementation. This long-term perspective aims to foster growth and innovation within the mining sector while addressing environmental and social responsibilities.
Aris Mining, which emerged from the merger of GCM Mining and Aris Gold in 2022, operates two underground gold mines in Colombia: the Segovia Operations and the Marmato Complex. These mines together contributed to a production rate of 210,955 ounces of gold in 2024, with ambitious targets aiming for 500,000 ounces annually as expansions progress.
Further, with ongoing projects such as the Toroparu gold project in Guyana and the Soto Norte joint venture, Aris Mining is well-positioned for transformational growth in the wake of this settlement. The forward-looking strategies laid out promise not only to enhance Aris Mining's operational capacity but also to contribute positively to the socio-economic fabric of the regions it operates in.
In summary, the agreement between Aris Mining and the Colombian government highlights a shift toward partnerships in the mining industry that prioritize sustainable development, community engagement, and environmental stewardship. This cooperative model sets a new standard for resolving investor-state disputes, potentially influencing similar agreements in the future across various economic sectors.
Topics Business Technology）
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