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Drummond Ltd. and Mayors of La Jagua de Ibirico and Chiriguana Reach Agreement on High Impact Projects

La Loma, August 26, 2020

Drummond Ltd. and the mayors of La Jagua de Ibirico and Chiriguana in Cesar concluded a process to reach a consensus on the High Impact Projects described in Clause 29.3.1 of Addendum No. 15 to the La Loma coal exploration and mining contract signed between the National Mining Agency and the mining company.

A project for the ‘Construction of rural housing in populated areas of La Victoria de San Isidro and Las Palmitas, municipality of La Jagua de Ibirico, Cesar,’ was agreed on with the mayor of La Jagua de Ibirico. On its part, Chiriguana reached a consensus on a project for the ‘Construction of housing solutions on existing lots to give decent quality of life to poor and vulnerable families in the municipality of Chiriguana, Cesar.’

Drummond supports this investment in a sector that will have an impact by reducing multidimensional poverty and the quantitative housing deficit, and by decreasing unsatisfied basic needs, especially in rural areas. The implementation of these projects to build low income housing in these two municipalities will benefit approximately 400 vulnerable families.

“This is a demonstration of careful work with in-depth analysis into what can be of the greatest benefit for the communities of which we form a part, and how we can equitably help those who most need it with the resources we generate,” said Juan Pablo Arteaga, Vice President of Sustainability at Drummond Ltd. 

The budget agreed on for the implementation of each project is USD$3.6 million, an investment also expected to invigorate the local economy in these municipalities.

What’s Next?

Having reached a consensus on these projects, a schedule and disbursement plan will now be developed for the next five years, a trust fund will be set up, and the estimated amount for the first year will be deposited in it.

This first amount will be allocated to preparing the feasibility studies (specific designs) and selecting and characterizing beneficiaries.

The process will conclude with the execution stage, which includes the construction and delivery of housing units along with follow-up, a communication plan, and accompaniment of the families.

The entire process was carried out with technical advising from Universidad de Santander, Valledupar campus, which was in charge of making sure the requirements were met for projects that will positively impact and contribute to the social development of the municipalities involved, thereby improving poverty indicators. The process was also accompanied by the National Mining Agency and the Departmental Planning Secretary.

As part of the activities, the UDES implemented a process to transfer knowledge and develop competencies for development project formulation, to help the municipal mayors formulate the projects in the pre-feasibility phase. With the consensus reached, the projects will now be executed over the next five years, as stipulated in the clause.

As part of its Corporate Social Responsibility policy and its contribution to meeting UN Sustainable Development Goals number 1, 6, and 11, No Poverty, Clean Water and Sanitation, and Sustainable Cities and Communities, respectively, Drummond Ltd. works in coordination with the municipal mayors in its area of influence to improve people’s quality of life.