Last June 18, the draft law "BY WHICH LAW 685 OF 2001 - MINING CODE – IS AMENDED," was reconciled and approved, comprising 31 articles. The draft was approved by the House of Representatives and the Senate, being now subject to presidential approval and constitutional review. This law established, among others, the following amendments:

Contract Proposals and Traditional mining

It introduced the requirement to applicants of proposals for concession contracts of indicating the existence of mining exploitations within the areas requested, establishing a penalty of rejection of the application or fine for the applicant if there is a concession contract.
 
It also established that, in the event that a concession contract is being performed and the mining authorities find the existence of traditional mining which was not informed by the applicant, the contract will be suspended for six months and the parties must proceed to enter into agreements regarding this subject.

Free Areas  

It authorized the mining authorities to delineate special areas that are currently free, on which there is the possibility to carry out mining projects of major national importance, in order to grant them in concession through a process of objective selection

Excludable Areas and forest reserves

It added new mining excludable areas such as ecosystems of upland and wetlands, and granted the Ministry of Environment the authority to establish the requirements and procedure to carry out subtractions of area and determine the conditions in which temporary subtractions will operate during exploration stages.

Exploration stage extensions

It introduced the possibility to extend the exploration period of the concession contract for up to a total term of eleven (11) years, provided that the legal requirements for this purpose are met.

Concession Contracts Extensions

It established the possibility of requesting an extension of the concession contract only for twenty (20) years, which is preceded by a negotiation procedure with the mining authorities and prior the fulfillment of a number of requirements established in the law.

Environmental Licenses

It instituted the requirement to obtain environmental license for the exploration stage of the concession contract whenever during the development of such stage it is necessary the construction of roads which also need environmental license.

Surface  Fees

It modified the prices of surface fees and established that it shall be payable in advanced annual installments, reason by which the first annuity shall be paid within the three (3) days following the moment  in which the mining authority, by administrative resolution, determines the free area subject to contract.

Proposal Refusals

It included the possibility of rejection of proposals for concession contracts due to the absence of payment evidence of the surface rent of the first annuity.

Guarantees

It instituted the possibility to grant in rem guarantees instead of insurance policies for purposes of ensuring compliance with mining and environmental obligations, payment of fines and caducity.

Concession Contract Proposals

It added the requirements for concession contracts proposals, including the presentation of a technical annex, and the evidencing of the economic capacity of the applicant, if applicable.

Mini Dredging

It granted special protection to the continued exercise of the mini dredging method with motors up to 60 horsepower, and granted a period of up to two (2) years to legalize said activity in the departments referred to in Article 309 of the National Constitution and in Chocó.