Contract Mining Partners
Mutually Beneficial Partnership
At Aris Mining, collaboration with local small-scale mining groups, known as Contract Mining Partners (CMPs), is a key part of our success in Colombia. CMPs are local formal contract mining companies, typically employing between 50 to 500 people each, with long-term contracts to supply mill feed to Aris Mining.
At Segovia, CMPs employ over 3,500 miners, benefiting from our mutually beneficial business model with them as well as inclusion in the formal economy, safer working conditions and adherence to environmentally responsible practices.
At Marmato, we recently signed a Memorandum of Understanding led by the Ministry of Energy and Mines, the National Mining Agency, the Governor of Caldas, the Mayor of Marmato, CORPOCALDAS and other key community stakeholders, to accelerate the formalization of artisanal and small-scale miners in the Municipality of Marmato. Through this agreement, we have committed to work with the government to streamline permitting for artisanal and small-scale miners, promote environmental stewardship and safety standards while also providing technical training to those artisanal and small-scale miners.
This is a significant milestone for responsible mining in Colombia, representing a mutually beneficial opportunity for artisanal and small-scale miners and Aris Mining to increase production while promoting environmental stewardship and safety standards and providing technical training to those artisanal and small-scall miners. It reinforces the strong institutional support Aris Mining has from the Colombian government and aligns with our long-term commitment to inclusive, sustainable development in our host communities.
Key Benefits of the CMP Model
| Aris Mining | CMPs |
|---|---|
| – Increases gold production with attractive economics – Extends mine life – Unlocks mutual growth opportunities – Builds community trust – Natural hedge | – Enhanced economics & working capital financing – Safer and more responsible operations through access to industrial processing capacity – Participation in the formal economy (including social security / government benefits, access to financial services, etc.) – Training programs in health and safety, environmental stewardship, etc. |
| Government | Environment |
|---|---|
| – Supports Government’s formalization strategy – Boosts tax revenues and royalty payments – Demands compliance with labour laws | – Eliminates use of mercury, which is commonly used by traditional small-scale miners – Efficient resource use (water, energy) – Responsible tailings disposal & environmental stewardship |
We believe that successful mining in Colombia must involve collaboration with communities, formalization of small-scale miners, and alignment with national priorities. Our partnership model with CMPs exemplifies our commitment to creating lasting, shared value.
Mining Formalization Agreement
