Cerrejón is part of the Large-Scale Mining Sector (LSM), which covers formal mining dedicated to the exploration and mining of mineral resources that has considerable reserves and is responsible for a good part of a country’s mineral production and exports.
What does LSM seek?
- To act as a representative of large-scale formal mining to authorities and public opinion.
- To monitor its positioning and competitiveness.
- To promote favourable investment conditions for developing projects with strong sector institutions, legal stability in the rules of the game, reinforcing safety in mining areas, and effective coordination between the mining sector and environmental sustainability.
The following companies form part of the LSM sector:
- Anglo American
- Anglogold Ashanti Colombia
- Colombia Natural Resources
- GranColombia Gold
- Eco Oro
- Minas Paz del Río
- Mineros S.A.
- MPX Colombia
- Prodeco Vale
- AUX Colombia
LSM, a key factor for the country's economy
LSM drives the economic development of Colombia by generating supply chains, acquiring goods and services, building infrastructure, local business creation, and the creation of quality jobs.
- Over the last 10 years, LSM supplied more than $20 billion pesos to the Colombian government as income tax, royalties, superficiary taxes, compensation, non-fiscal contributions, and energy contributions, amongst others.
- In 2009, the GDP of the mining sector represented 2.35% of the total GDP.
- To June of 2010, mineral exports represented 24.8% of the country’s exports.
- In 2010, royalties from mineral sectors represented 22% of total royalties paid to the Colombian government.
- Investment in mines has spurred total direct foreign investment (DFI). In 2009, 43% of the total DFI was in mines, a growth of 78% between 2008 and 2009.
- Over the next five years, LSM foresees an investment of almost US$8,355 million in project development and expansion in the framework of sustainable responsible mining.
- In 2009, the LSM companies made national purchases of nearly $2.6 billion pesos.
- To September of 2010, the mines and energy sector had 291,000 job positions filled, equivalent to 1.2 million indirect jobs, which is 6% of the total working population of the country.
- There have been three consecutive years of growth in the working population, with rates of 44% (in 2008), 63% (in 2009), and 20% (in 2010).
- LSM not only generates considerable employment, it is also often the only employment alternative in the zones where it operates.
- In 2009, the companies comprising LSM firms invested $654,000 million pesos in infrastructure such as roads, airports, bridges, electrical power grids, and more. In addition to serving the companies in their operations, this infrastructure is now also for public use.