Deal #3103

Location #1

Spatial accuracy level
Exact location
Location
Vda. Monclart, Mocoa, Putumayo, Colombia

Latitude
1.23279
Longitude
-76.67137000000002
Target country
Colombia
Location description
10 Km northwestern of Mocoa
Contract area
Comment on location
The area consists of 6 parts, any of which represents a concession contract awarded to Mocoa Ventures Ltd. by the Agencia Nacional de Minería. The polygon with the contract JAP-16181 is under consideration and has not been awarded yet. The areas are divided, although they comprehend a continuous area.

Land area

Intended size (in ha)
11391
Size under contract (leased or purchased area, in ha)
[2019-02-14, current] 10000
Size in operation (production, in ha)
[current] 0
Comment on land area
The area under concession to Mocoa Ventures Ltd is in the exploration phase. In Colombia, any concession contract implies that there is a deadline for the exploration phase and the company or person in charge of the area might ask for an extension. The company has done this several times and up until now, there has been extraction of neither copper nor molybdenum. Nevertheless, this deadline is close, which means that the extraction of the mine is supposed to start soon. It is important to mention that for the mine to be productive, the company has to have an environmental permission issued either by Corpoamazonia or by the Environment Ministry of Colombia. Up until now, this has not occurred, which means that the company is not allowed to exploit the mine. Important: Although the company has not started the extraction of the minerals, all contracts with exception of JAP-16181, have the form of a land concession for mineral extraction. That's why this deal is in the database. Source: Look at Source 10

Intention of investment

Intention of investment
[current] Mining
Comment on intention of investment
According to Libero Copper corporation, up until now there must have been an investment of US$ 6 Million in exploration, at least, by the previous holders of the concession contracts (AngloGold Ashanti and B2Gold). Libero Copper, the holder of the area since 2018, has spent CAD$ 12117 Source: Source 8 and Source 9

Nature of the deal

Nature of the deal
Exploitation permit / license / concession (for mineral resources)
Comment on nature of the deal
The company has a concession to extract the mineral, nevertheless they have not started the extraction.

Negotiation status

Negotiation status
[2007-04-19, current] Concluded (Contract signed)
Comment on negotiation status
Every contract has its own date. See details below.

Implementation status

Implementation status
[2018-05-15] Startup phase (no production)
Comment on implementation status
Up to this date, the environmental institution in charge of issuing the extraction permits for mining in Putumayo has not issued any permit for that. Source 10

Purchase price

Purchase price
924061
Purchase price currency
Canadian Dollar ($)
Purchase price area type
for specified area
Purchase price area
11391
Comment on purchase price
The right for the concessions was bought to B2Gold in exchange of 10400000 "common shares" of Libero Copper, which by the time of the transaction represented 19% of the company. Additionally, the agreement included royalties of 2% to be paid to B2Gold and 1% of royalties held by AngloGold Ashanti Source: Source 5, Source 6, Source 9 (Page 8)

Leasing fees

Annual leasing fee
9
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
According to Colombian legislation stated by the Código Minero of 2001, in concession contracts of less than 2000 hectares, the fee per hectare is of US$9 approximately. For areas higher than 2000 hectares the leasing fee might double or even triple its price. Not surprisingly, every concession contract is of less than 2000 hectares, although the six of them imply a continuous area of more than 11000 hectares... Source 7

Contract farming

Contract farming
No

Contract #1

Contract number
FJT-131
Contract date
2006-12-05
Duration of the agreement (in years)
29
Comment on contract
This concession area entails a section of the Reserva Forestal Protectora Nacional "Cuenca Ala del Río Mocoa" and also with the Indigenous resguards of Kaméntsábiya de Sibundoy – Etnia Kamentsa, Inga de Condagua – Etnia Inga and Villa María de Anamú – Etnia Yanacona, all recognized by the government. Source: Catastro Minero: http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc

Contract #2

Contract number
FJT-132
Contract date
2007-04-19
Duration of the agreement (in years)
29
Comment on contract
Source: Catastro Minero: http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc

Contract #3

Contract number
JAP-16141
Contract date
2009-11-20
Duration of the agreement (in years)
29
Comment on contract
Source: Catastro Minero: http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc

Contract #4

Contract number
FJT-141
Contract date
2006-11-28
Duration of the agreement (in years)
29
Comment on contract
Source: Catastro Minero: http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc

Contract #5

Contract number
FJT-142
Contract date
2007-04-19
Duration of the agreement (in years)
29
Comment on contract
Source: Catastro Minero: http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc

Contract #6

Contract number
JAP-16181
Duration of the agreement (in years)
29
Comment on contract
This concession permit has not yet been awarded.

Number of total jobs created

Jobs created (total)
Yes
Current number of employees (total)
[2008-07-31] 34
Comment on jobs created (total)
33 out of the 34 employees were full time. This was by the time that the Mocoa Ventures belonged to B2Gold

Operating company

Operating company
Name of investment project
"La Mocoa" project
Comment on investment chain
Mocoa Ventures Ltd is a Colombian company which initially belonged to Mocoa Ventures Ltd (Listed in the British Virgin Islands), which was owned by Colombian Ventures Ltd (Registered in Bermuda), which was owned comopletely by Andan Avasca Resources Inc. (Registered in British Columbia) and which was completely owned by B2Gold Corp. Mocoa ventures was acquired by Libero Copper (it is uncertain of the Colombian branch or the company registered in the British Virgin Islands) Look at Sources 6 and 7

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2008-01-04

Data source #2

Data source type
Company sources
File
Date
2010-01-01

Data source #3

Data source type
Media report
File

Data source #4

Data source type
Media report
File

Data source #5

Data source type
Media report
Publication title
Libero Copper Acquires the Mocoa Porphyry Copper Deposit From B2Gold
Date
2018-06-15

Data source #6

Data source type
Company sources
Publication title
MOCOA COPPER-MOLYBDENUM PROJECT, COLOMBIA - NI 43-101 Technical Report
Date
2018-06-15

Data source #7

Data source type
Company sources
Publication title
Annual Information Form of B2Gold Corp.
Date
2008-08-08
Comment on data source
Old financial report of B2Gold, previous holder of the concession contracts

Data source #8

Data source type
Company sources
Publication title
Next Generation of Copper Mines in the Americas
Date
2019-01
Comment on data source
It was impossible to download the file. Company presentation

Data source #9

Data source type
Company sources
Publication title
Libero Copper Corporation Unaudited condensed interim consolidate financial statements
Date
2018-09-30

Data source #10

Data source type
Media report
Publication title
Corpoamazonia no ha otorgado licencia ambiental a la empresa Mocoa Ventures Ltda
Date
2018-05-15

Data source #11

Data source type
Media report
Publication title
Mocoa desafía a la Corte y al Gobierno prohibiendo la minería
Date
2018-12-13

Data source #12

Data source type
Media report
Publication title
La amenaza minera en el Alto Putumayo
Date
2018-05-11

Data source #13

Data source type
Media report
Publication title
La pelea de dos décadas que tiene en vilo el futuro de las montañas de Mocoa
Date
2018-11-10

Names of communities / indigenous peoples affected

Comment on communities / indigenous peoples affected
See the geographic tool in the Catastro Minero of the Agencia Nacional de Minería http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc - Look for the Solicitude FJT-131

Recognitions status of community land tenure

Recognition status of community land tenure
Indigenous Peoples traditional or customary rights recognized by government
Comment on recognitions status of community land tenure
See the geographic tool in the Catastro Minero of the Agencia Nacional de Minería http://www.cmc.gov.co:8080/CmcFrontEnd/consulta/index.cmc - Look for the Solicitude FJT-131

Consultation of local community

Community consultation
Not consulted
Comment on consultation of local community
Since the phase of the project is only for exploration, it is not mandatory to make any consultations. Nevertheless, the indigenous communities and the inhabitants of Mocoa, the next city (10 km - 36000 inhabitants) is against the development of mining projects. They intended to make a previous democratic consultation on this topic, but the government did not allow it. Since the Consultation of Cajamarca (La Colosa - See deal 811) the Mining Ministry and the government are against those public consultations. See Source 13 and 12

How did the community react?

Community reaction
Rejection

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
Although the superficial land should not be affected legally by the project, there are land holdings with land restitution purposes on the concession area. Once the extraction of the mining starts, this might affect those land rights. Additionally, it seems that some peasants of the area have been suggested to sell the land and some communal leaders have suffered of life threats Source 13

Displacement of people

Displacement of people
No

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation
Violence
Comment on negative impacts for local communities
There has been erosion and avalanches in the mountain. In 2017 Mocoa suffered from an avalanche in this area. It is not certain, but some argue that the mining interest there might have been a cause for that. Communal leaders have suffered from life threats. See Source 13

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Road and education infrastructure

Promised benefits for local communities

Promised benefits for local communities
Education
Roads

Former land owner (not by constitution)

Former land owner
State
Private (smallholders)
Community
Indigenous people
Comment on former land owner
According to Colombian law it is allowed that in the area land rights are held on the surface. Nevertheless, what is in the subsoil belongs to the State and can be under concession contracts. In the area are Forest reserves, indigenous communities and peasants.

Former land use

Former land use
Smallholder agriculture
Conservation

Detailed crop, animal and mineral information

Resources area
Copper, Molybdenum (11391 ha)
Resources yield
Copper (4 tons)
[current] Molybdenum (510 tons)
Comment on resources
The copper yield refers to 4.60 Billion pounds of copper. The Molybdenum yield refers to 510.5 Million pounds in the area. The company has also permission to exploit gold, silver, platinum and zinc Source: Catastro Minero and Source 6

Water extraction envisaged

Water extraction envisaged
Yes
Comment on water extraction envisaged
The company asked for the extraction of 0.07 Lt/sec for the campsite and 3 Lt/sec for industrial use. They received permission.

Source of water extraction

Source of water extraction
Surface water (River)

How much water is extracted?

Water extraction amount
3.07
Comment on how much water is extracted
Measurement unit: Lts/sec

Overall comment

Overall comment
This deal relates to 6 continuous concession contracts in charge of Mocoa Ventures. The minerals were first discovered by the United Nations and Ingeominas in 1984, but due to political reasons no one had interest in exploit the mineral. In the government of Álvaro Uribe, the Foreign Investments were fostered and therefore the idea of retaking this project. The project constantly changed its owners, being at first held by UN-Ingeominas, Minera Andes, AngloGold Ashanti, Antofagasta, B2Gold and finally by Libero Copper. This last transaction was done in 2018. The project is still in its exploration phase and they cannot extract any mineral until they get a permission by the environmental authorities. The community in Mocoa opposes to the project and tried to make a public consultation to show their opinions on the project. The government disallowed that and did not permit the consultation. There are reports arguing that in the area life threats have occurred against communal leaders and some peasants are being advised to sell their lands. Mocoa suffered of a heavy avalanche from the rivers close to this area, which raises concerns on the risks that such a project could mean for the population.

June 18, 2019, 7:17 p.m.

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May 14, 2018, 9:56 p.m.

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April 4, 2016, 7:20 a.m.

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July 16, 2013, 10:14 p.m.

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Feb. 26, 2013, 8:48 p.m.

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Feb. 22, 2013, 7:50 p.m.

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Feb. 22, 2013, 7:37 p.m.

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Feb. 22, 2013, 7:36 p.m.

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Feb. 22, 2013, 7:35 p.m.

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Feb. 22, 2013, 7:32 p.m.

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