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The “richest” municipalities of Cesar by royalty resources

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By Editorial EL PILÓN

The Ministry of Finance defined the resources that it will allocate to municipalities and departments for royalties during the 2023-2024 biennium. El Cesar, adding the Government and the 25 municipalities, as a coal producing department will receive around 1.35 trillion pesos for royalties.

However, that money is concentrated in the Government of Cesar and the 6 mining municipalities: Codazzi, Becerril, La Jagua de Ibirico, Chiriguaná, El Paso and San Martín.

Undoubtedly, the largest administrator of royalties is the Government of Cesar, which over the next two years will receive $557,033 millionthe 73% of the direct allocations that are delivered to this territory.

Then, at the municipal level, Becerril is the biggest beneficiary. During 2023 and 2024 you will receive $265 billion for direct allocations of the General Royalty System.

In second place is La Jagua de Ibirico, with $58,691 million for the biennium. Making calculations, Becerril receives 3 times more than La Jagua de Ibirico.

Direct allocations to the municipalities of Cesar.

Outside the mining corridor in the center of the department, San Martín appears in third place, which will receive more than $44 billion for hydrocarbon exploration and exploitation activities. San Martín is the only municipality outside the mining corridor that receives a significant number of resources from royalties.

Returning to the mining corridor, Codazzi ($33,327 million), Chiriguana ($9,963 million), River of gold ($4,176 million) and El Paso ($2.8 billion) complete the list of municipalities that receive significant resources from royalties.

The others 18 municipalities of Cesar they will receive less than 1% for direct assignments.

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As the Ministry of Finance points out, they are beneficiaries of direct allocations the territorial entities in whose territory exploitation of non-renewable natural resources is carried out, as well as the municipalities and districts with maritime and fluvial ports through which said resources or products derived from them are transported.

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WHY BECERRIL?

Located in the Cesar mining basin, ‘Rest’ It is one of the largest coal extractive operations in the country. The mine operated by Drummond It is located between the municipalities of Becerril and Codazzi, and borders with La Jagua de Ibirico and El Paso.

As explained by the Secretary of the Treasury of Becerril, Diomedes Pérez, “In the last year Drummond began to operate the part of El Descanso located in Becerril, from there the increase in royalties for the municipality”.

According to public information, in El Descanso there are extractable reserves greater than the 1.7 billion tons of coal.

MORE INCOME

Thanks to the latest reform to the General System of Royalties, the producing departments will receive more income.

For the 2021-2022 biennium, Cesar received a total of $707,187 million from the SGR. By 2023-2024 direct allocations will reach 1.35 trillion.

However, after 2023 a decline in income begins. While this year, Cesar will enjoy $606 billionby 2024 it drops to $371 billiona reduction greater than 40%. The constant descent will continue until reaching the $290 billion in 2029.

NATIONAL PRODUCTION

1 o’clock2.5 million tons of coal that are produced quarterly in Colombia, Cesar leads the table with 7 million. That is, the 56% of national production. Almost all of this extraction occurs in the municipality of Becerril, exactly in the Drummond ‘El Descanso’ project, with 4.6 million.

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In second place appears the department of La Guajira. That is to say, Cesar and La Guajira extract 93.6% of the coal What does Colombia sell?

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