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Banking as a barrier to the mining sector

Banking as a barrier to the mining sector

The mining sector in Colombia is a strong and structural support of the country’s economy that has achieved, since before the liberation of foreign trade (1991), one of the economic
pillars that demonstrate the dynamics of regional economies such as Antioquia and Valle from Cauca, mainly.

According to the National Administrative Department of Statistics – DANE, gold exports reached the fourth place in FOB exports as of July 2020, with a total FOB export of USD778,701,000
participating in 7.2% of comparative exports of January to July 2019 and 2020 that leads to a constant and growing incentive. However, the encouraging and positive figures shown above
are not so for the banking sector which, despite the efforts of the private sector and the guidelines of the National Government, has difficult access to banking with persistent refusals
to access for the sector despite the business principle of guaranteeing the prevention of money laundering and terrorist financing and, on the other hand, the right for natural and legal
persons to obtain a bank account.

Consequently, the current conditions of the Colombian business community, specifically the mining sector, show great opportunity and execution of a conscious, sustainable and socially
and environmentally responsible mining, as well as the ORANGE TECH S.A.S BIC company. The segmentation of the precious metals sector is due to ignorance of its operation, also at crucial
risk points; Without accepting the companies, they deny the accreditation and creation of bank accounts as risk mitigation and they do not grant the opportunity, not even, to know
the compliance systems, what and how is the operation of exploration, exploitation and commercialization of the mineral, being gold the main support for the banking sector from
the first moment.

Finally, according to the traceability for the export of the mineral, the bank is fundamental for the execution of the operations. It is the biggest current problem and, in turn, the solution
lies in venturing into the mining sector that gives life to its operation, and its contribution will be the opening of the environment generating employment, guaranteeing the traceability
and irrigation of electronic payments, knowledge on one of the most important sectors of the national economy and contributing even more to financial education and inclusion. The call to
financial institutions is anxious and urgent. The call is to contribute not documentary or publicly on banking, but to implement, with clear facts, financial inclusion without
preferences, without mistrust, without refusals. The final call is to obtain balance in what is spoken from the representatives of the financial entities of Colombia and the facts
carried out and demonstrable.

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