Annual Progress Report Fiscal Year 2018, incorporating Quarter IV October 1, 2017 – September 30, 2018

The program aims to reduce the social and environmental impacts of artisanal and small gold mining (ASGM) in twenty-two municipalities within the departments of Antioquia and Chocó. The initiative focuses on legalization and formalization of illegal mining, capacity building and strengthening, promotion of more appropriate technology and improved practices, development of new legal routes to market, and promotion of sustainable alternatives to mining. Oro Legal works closely with the Government of Colombia (GOC), non-governmental entities (NGOs), communities, and the private sector to achieve an ambitious set of indicator targets. The program's financial and administrative performance was strong during the third year of implementation, from October 1, 2017 to September 30, 2018 (FY18). The Activity Fund (AF) was disbursed a total of $X during the year, with $Y disbursements under the AF, $Z pertained to operations-related expenses, and the remainder to General and Administrative (G&A) and Fee. Total expenditures to date represent $A of the contract ceiling, which is fractionally more than the period of implementation (12 months, equivalent to $B of the life of program, LOP). The technical performance of Oro Legal was also strong during FY18. Overall indicator performance against cumulative LOP targets was strong, with eleven indicators receiving a "green flag" with an average score of 137%, five classified as amber with an average score of 63%, and just two remaining in the red zone, with an average progress of 12% against LOP targets. The two underperforming indicators are value of smallholder sales (non-gold) and leverage. Efforts to address these challenges will continue into Year 4, including the creation of a new Economic Development Investment Fund (FIDE) and the establishment of a new artisanal and small gold mining (ASGM) service organization. During FY18, Oro Legal invested a significant level of effort (LOE) in collaborating with government entities, miners, and mining title holders. The Activity participated in 71 meetings, roundtables, and other events, and built a portfolio of 16 potential mining formalization projects comprising 230 mining production units (MPUs). Of these, eight projects – involving 58 MPUs – embarked on formalization during FY18. A total of 32 MPUs were formalized by the end of the reporting period, 15 during FY18. The year also saw almost one ton of legal gold produced by Oro Legal-supported MPUs, generating $C in licit revenue and eliminating 12.67 tons of mercury from the gold production process. At the field level, business, technical, and environmental performance of Oro Legal-supported MPUs improved during FY18 by 24% overall against baselines, underpinned by technical assistance (TA) at mine sites. Despite the challenging security background, Oro Legal's field teams continued to grow the portfolio of activities and undertook several important visits to Activity sites, including one by the USAID Administrator, Mark Green.