Ex-post Evaluation

1-1. Background

Given the fact that the conventional technology was not adequate for the development of deposits for minerals that were difficult to extract, INGEOMINAS decided to look for methods and extraction technologies that were more efficient and that had lower costs. In order to collaborate with this undertaking, the government of Japan has been cooperating since 1992 until 1996 in the Project "Recovery of precious metals of complex mines of reef type" at laboratory level in the mining of precious metals and related. In order to transfer the laboratory techniques of this Project to the local mining, a new Project was requested by the government of Colombia.

1-2. Summary of the Project

The Project "Improvement of Mineral Processing Technology Concerning Medium and Small Scale Mines" was carried out with the purpose of mainly equipping the counterpart personnel in INGEOMINAS with the ability of instructing the small and medium mining industry in order to improve the processing, increase the productivity of precious metals and control contamination caused by residual waters. The Project was implemented in INGEOMINAS Cali, currently the Regional Work Group of Cali.

(1) Superior Objective

The performance of the small and medium industry in the regional mines of gold has improved.

(2) Project Objectives

The counterpart personnel of INGEOMINAS and MINERCOL are equipped with the capacity of instructing the processing in the area of gold mining.

(3) Results

1) The operation unit of the Project is established.

2) The experimental pilot plants are installed and maintained.

3) The engineers in charge of the design of the plants and environmental control are receiving training.

4) The improvement guidelines of the processes and environmental control in the mines and plants are presented.

(4) Inputs

Japanese counterpart:

Colombian counterpart:

3-1 Summary of the results of the evaluation

(1) Impact

Regarding the superior objective of the Project, INGEOMINAS has contributed to the improvement of the performance of the small and medium auriferous mining industry through technological assistance in the processing of minerals of the mines in the south-west of Colombia. INGEOMINAS of Cali has offered advisory services for the mines of El Diamante and Llanada of Nariño, Ginebra of Valle del Cauca and El Tambo of Cauca. INGEOMINAS also prepared a manual for the treatment of liquid waste and the classification and categorization of solid waste that is the reference document for the small and medium mining sector. Currently, INGEOMINAS possesses a plan of the research Project in cooperation with the Universidad Nacional de Colombia, that looks after the generation of basic technical information for the design of equipment and modern processing with the purpose of creating productive economical processes that are environmentally efficient in the mines of Valle del Cauca.

As impact of the Project, after its termination, the counterparts in cooperation in geological analysis and mineral processing collaborated with the characterization of mines for the technological development for the recovery of precious metals in auriferous mines. By ends of the year 2003, INGEOMINAS Cali concluded the research regarding the mineralogical, chemical and physical properties of 71 mines located in 14 auriferous mining districts throughout Valle del Cauca, Cauca and Nariño. The studies of chemical, mineralogical, metallurgic and environmental characterization of the auriferous deposit of Fondas+ of the Department of Cauca, collaborating with the Autonomous Corporation of the Department of Cauca (CRC). The studies finished in February 2004 and their results were published in a report.

Other impact of the Project was the accomplishment of an In-Country Training organized by INGEOMINAS and JICA in the Regional Work Group of Cali in 2005. The course consisted in granting techniques for the recovery of precious metals of auriferous mines in an efficient way, with consideration to the environment.

(2) Sustainability

The structuring process of INGEOMINAS resulted in changes in the definitions of the functions of the institute, which provoked a decrease in the activities that were necessary in order to develop the sustainability of the Project. During the restructuring period, the functions of INGEOMINAS have become unsafe regarding the research of the processing and mining promotion for the extension of technology. Between 2003 and 2004 INGEOMINAS paralyzed some activities related to the Project, mainly the advisory in processing with the pilot plant, indicating the change in functions. Afterwards, in October 2004, the functions of INGEOMINAS were clarified and the technical assistance in the processing of the Project was incorporated as a part of its activities of internal promotion.

The functions of INGEOMINAS regarding the research about the processing and mining promotion for extension of technology were not outlined clearly during the restructuring period.

The counterpart personnel of the Project that currently remains in INGEOMINAS , holds its capacity of teaching and letting the miners of the region know about the chemical, mineralogical, metallurgic and environmental characterization of its auriferous mineral, and the adequate treatment scheme in order to achieve a greater efficiency in the processes, including the treatment of residual waters, which allowed the accomplishment of the course in 2005 in Cali. However, it is important to mention that due to the restructuring process, a considerable amount of counterparts that participated in the Project have moved to other charges outside the Work Group of Cali.

The readapting and maintenance costs of the equipment of the Project have been financed by the Sub-direction of Underground Resources of INGEOMINAS. The Sub-direction and the Regional Work Group of Cali have maintained until the moment the pilot plant in a satisfactory way, however, some financial difficulties may be present when the plant requires of a bigger repair work.

3-2. Factors that have contributed to the sustainability

The cooperation with the Mining-Environmental Centers (CAM) of Regional Autonomous Corporations has facilitated the extension of the activities of INGEOMINAS, that are still taking place within the Project. The Work Group of Cali has cooperated with many CAMs in the accomplishment of studies for the characterization of the Regional Corporation of Cauca (CRC) and in the programming of a new Project for the auriferous sector with the Regional Autonomous Corporation of Valle del Cauca (CVC).

INGEOMINAS has covenants with different universities including Universidad del Valle with which there is a cooperation agreement for the exchange of scientific, technical and services knowledge. The regional work group of Cali has cooperated with this university. P.e. students accomplish internships in the laboratories and pilot plants.

3-3. Factors that have inhibited the impacts

The policy of legalization of the mines through the formation of cooperatives or associations has not obtained the expected results at the time still a high percentage of auriferous mining in Colombia is practiced illegally. Legalization is the base of mining promotion. The association between small miners has not made any achievement either.

At this time, there has been any development of new policies of mining promotion, due to the institutional stability of the public entities in the mining sector. After the restructuring of INGEOMINAS, no new projects of financed mining promotion have been approved. These projects may finance Projects related with the continuity of the Project.

After 2004, the state institutes in the mining sector have been submitted to a series of drastic institutional changes that affected the sustainability of the Project. The governmental institutes of the sector were substantially reduced. MINERCOL has not been able to play as counterpart in the Project due to the instability in the administration, and the later decision of the Colombian government regarding the liquidation and dissolution in 2004. The businesses of MINERCOL have been delegated to INGEOMINAS. INGEOMINAS, has also been reduced and had to perform a cut in the payroll. In INGEOMINAS Cali the number of qualified personnel trained by the Project decreased due to the restructuring process.

The violence existing in the majority of the mining parts in the country is another factor that inhibits the impact of the Project. It is typical to find the areas of auriferous mining, illegal plantations of coca and poppy. The presence of guerrilla, paramilitary and drug-dealing groups prevent or may prevent the eventual technical assistance given to the miners.

3-4. Conclusions

INGEOMINAS contributed to the improvement of the performance of the small and medium auriferous mining industry through the technological assistance in the processing and the analysis of minerals. INGEOMINAS offered advisory services and studies of characterization for the mines in the south-west of the country.

The sustainability of the Project was seriously affected by the political changes, the application level of the mineral policies and the drastic restructuring of the administrative system of the mining sector, the consisted in the dissolution of MINERCOL and the restructuring of INGEOMINAS. The existence of violence in the majority of the mining regions damaged and inhibited the possible impacts of the Project.

Considering all these inconveniencies, the JICA office in Colombia elaborated some approaching points with INGEOMINAS so that the results of the Project were used in a higher degree, trying to minimize the negative effects of the restructuring process. Currently, a new research plan has been elaborated and a training course took place in 2005. Therefore, it is expected that once the situation has been stabilized, the project may generate the calculated impacts through a greater use of the qualified personnel and the supplied equipment.

3-5. Recommendations

It is considered that it would be very useful for the National Planning Department and the Ministry of Mines and Energy to take advantage of the results generated by the Project. It is expected that the National Planning Department approves the execution of those mining projects that include the results of the Project, using the National Fund of Royalties.

INGEOMINAS possesses a very important capital in human resources in the counterpart of the Project. It would be recommendable that INGEOMINAS uses this capital in human resources in order to develop the foreseen impacts of the Project. It could be possible to create systems in order to facilitate technical assistance to those auriferous mining projects that count with certain requirements of environmental management, or the creation of projects with punctual technical assistance with the purpose of raising productivity bearing in mind the reduction of the negative environmental impacts.

It would be very convenient that INGEOMINAS promotes the execution of the project "Geological-mining and geo-environmental characterization of the sectors of Cuevaloca (Buga) and El Retiro (Ginebra) in the department of Valle del Cauca" which is to be accomplished in cooperation with Universidad Nacional de Colombia. This project may generate very important results in the promotion of efficient environmental and productive processes.

It is considered as highly important to increase the cooperation with the organisms that work jointly with INGEOMINAS, such as the universities and SENA, in the technological transference of mining in order to extend the results of the Project. The use of the pilot plant will be a way of effective technical assistance for the small and medium mining industries through the use of Sponsor Plans in covenants with the universities.

The pilot plant located in the Regional Work Group of Cali may fulfill a very important role in the training and technological transference for the auriferous mining sector. It is expected that, once the situation in INGEOMINAS is stable again, after the adaptation period of the restructuring process, the plant must be used frequently.

The restructuring process resulted in a decrease of the number of qualified technical personnel. It will be very important that the institute implements the necessary conditions in order to secure the permanency of the technical personnel so that the activities in the project can be carried out properly.

It would be advisable that the JICA office in Colombia, continues to work jointly with INGEOMINAS so that the results of the project may be exploited in a higher degree. It is considered that the organization of the In-Country Training with INGEOMINAS is an efficient method for the disclosure of the technology obtained from the Project.

It is important that INGEOMINAS makes progress with the process of mining legalization in order to extend the technical assistance to as many mines as possible.

3-6. Lessons learned

In moments in which the government faces complex political and social problems, and there is a substantial restructuring in the governmental mining institutes, it is considered according to such changes, that the continuity of the cooperation is very useful and necessary.

3-7. Monitoring situation

Between October and November, 2005 an In-Country Training was carried out in order to train the Colombian technicians in the mineralogical characterization tending to the mineral processing, in different processing methods experienced in the Project, in the treatment of liquid waste and in the processing within the pilot plant.