Post on 16-May-2015
MINISTRY OF MINES AND ENERGY
V FERIA INTERNACIONAL MINERA
BEATRIZ DUQUE MONTOYADIRECTORA DE MINAS
Medellín, septiembre 10 de 2009
AGENDA
1. Colombia’s general overview 2. Coal and precious metal potential in
current mining districts. 3. Ongoing exploration and production
projects4. Colombia’s infrastructure 5. Conclusions
Official Name: Republic of Colombia Continental Area: 1,141,748 Km2 Population: 42 Million inhabitants
||| (75% urban, 25% rural) Population Density: 36.12 people by Km2
Capital: Bogotá
(7 Million inhabitants)
GDP* US$ 181.8 Million
GDP/Capita* US$ 4132.7
FDI (2008*) US$ 8043 million
Literacy Rate: 94.2% Political Constitution: State ruled by law,
organized as a unitary Republic
System of Government: Presidential
Balance of powers between executive, legislative & judicial branches.
Colombia in Figures
*: III Q 2008
Institucional Structure of the Mining Sector
ROYALTIES
INGEOMINAS Geological & Mining Institute
MINISTRY OF MINES AND ENERGYMinister of Mines and Energy
MAYOR DELEGATES
UPME – Planning Unit
GEOLOGIAL SERVICES
CONTRACTUAL UNDERTAKING
SURVEILLANCE
PROMOTION
SYSTEM OF MINING INFORMATION
CONTRACTUAL UNDERTAKING
SURVEILLANCE
Director of MinesPlanning sector Mining public policyCoordinate mining sector
Contribution of the Colombian mining sector to the country’s economy in 2002 and 2008
Mineral Exports (Millions of US$)*
Mineral Exports of total Exports (%)*
Mining FDI (Millions of US$)**
Mining Royalties (Millions of US$)***
20062006
US$ 5,208
21,35%
US$ 1,783
US$ 369
20072007
US$ 6,339
21.2%
US$ $1,100
US$ 468,5
20082008
US$ 7.447
20,0%
US$ 2,116
US$ 601,33
20022002
US$ 2.821,3
21,55%
US$ 466
US$ 83
2009 (p)2009 (p)
US$ 4.063
26,2%
US$ 866
US$ 338,67
* 30 June 2009** 31 March 2009*** 30 June 2009
TRM I Q of 2009 $ 2.318/USD
Mineral exports 2000 -2009*
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*OTHER METALS 241 50 75 132 204 378 589 710 495 205
GOLD 91 55 94 585 561 517 281 350 891 42
EMERALDS 97 89 92 80 74 72 90 126 154 631
NI CKEL 211 235 272 416 628 738 1.107 1.470 864 306
COAL 861 1.179 991 1.422 1.854 2.598 2.913 3.300 5.043 2.881
US
D M
ILL
ION
* II Q 2009
Countries investing in mining exploration
AGENDA
1. Colombia’s general overview 2. Coal and precious metal potential in
current mining districts. 3. Ongoing exploration and production
projects4. Colombia’s infrastructure 5. Conclusions
Thermic
C/marca 236 1.482 11.862
Boyacá 170 1.720 12.781
Antioquia 90 475 10.336
Valle- Cauca 41 242 11.016
Santander 56 464 12.790
N. Santander 120 795 12.653
Córdoba 381 722 9.280
Cesar 2.035 6.556 11.655
Guajira 3.933 4.536 11.586
Region
MeasuredResources
MTPotential
MTEnergy (BTU/lb)
Metalurgic
Geological Potential: Precious Minerals and Metals
Source: Ingeominas, 2006Fuente: INGEOMINAS
1
2
7
3
56
4
Potential Prioritized Zones Minerals
1. Nort west of the Department of Antioquia
Copper, Gold, Molybdenum
2. River Cauca CannonGold and basic metals
3. Departments of Nariño and Putumayo
Gold and basic metals
4. Colombian East Gold
5. San Lucas Mountain Gold
6. Santander Mountain Range Gold
7. Departments of Tolima and HuilaGold and basic metals
AGENDA
1. Colombia’s general overview 2. Coal and precious metal potential in
current mining districts. 3. Ongoing exploration and production
projects4. Colombia’s infrastructure 5. Conclusions
Main projects in a production stage
Project: CerrejónLocation: GuajiraOwnership:
33% BHP Billiton 33% Xtrata 33% Anglo American
Mineral: CoalProduction/year: 30 MM Tones
Project: La LomaLocation: CesarOwnership: DrummondMineral: CoalProduction/Year: 22.9 MM Tones
Project: El DescansoLocation: CesarOwnership: DrummondMineral: carbónProduction/Year: begining
Main projects in a production stage
Project: CMU-Tesoro-JaguaLocation: CesarOwnership: GlencoreMineral: CoalProduction/Year: 4,4 MM Tones
Project: CalenturitasLocation: CesarOwnership: GlencoreMineral: CoalProduction/Year: 3,7 MM Tones
Main projects in a production stage
Project: La FranciaLocation: CesarOwnership: Coal CorpMineral: CoalProduction/Year: 1,5 MM Tones
Main projects in a production stage
Project: CerromatosoLocation: CórdobaOwnership: BHP Mineral: FerronickelProduction/Year: 108 MM pounds
Main projects in a production stage
Project: El BagreLocation: AntioquiaOwnership: Mineros S.A.Mineral: Gold (Alluvion)Production/Year: 80.000 ozWill increase production in 25.000 oz per year with operation of two new dredges acquired in Brazil.
Main projects in a production stage
Project: Lower MarmatoLocation: Caldas (Marmato)Ownership: Mineros Nacionales Mineral: Gold (Vein)Production/Year: 30.000 oz
Main projects in a production stage
Project: Paz del RíoLocation: BoyacáOwnership: VotorantimMineral: Iron Ore Production/Year: 624.000 Tones
Main projects in a production stage
Project: La YLocation: Antioquia (Zaragoza)Ownership: Mineros S.A.Mineral: Gold (vein / underground)Proven Reserves: 300.000 ozIt will start production in February or March 2009. It is conducting additional exploration to increase proven reserves.
Main exploration projects
Project: Río de OroLocation: Norte de Santander (Tibú)Ownership: Geominas and othersMineral: CoalInferred resource: 320 MM TonesProven reserves: 60 MM Tones
Main exploration projects
Project: Upper MarmatoLocation: Caldas (Marmato)Ownership: Colombia GolfieldsMineral: Gold (Veins)Inferred resource: 2.5 MM ozDrilling: 32.000 ml
Main exploration projects
Project: GramaloteLocation: Antioquia (San Roque)Company: B2Gold-AGAMineral: Gold (Vein)Inferred resource: 2.5 MM OzDrilling: 320.000 ml / 450 ml deep.
Main exploration projects
Project: QuebradonaLocation: Antioquia (Jericó)Ownership: AGA – B2GoldMineral: GoldInferred resource: 1.5 to 2 MM ozDrilling: 6.000 ml / 300 ml. deep
Main exploration projects
Project: San JorgeLocation: CórdobaOwnership: BHP BillitonMineral: Coal Bidding process of Ingeominas
Main exploration projects
Project: AcandíLocation: ChocóOwnership: Anglo American Colombia ExplorationMineral: polymetallic sulphideBidding process of Ingeominas
Main exploration projects
Project: Pantanos PegadorcitoLocation: Antioquia (Frontino-Dabeiba)Ownership: Carbones de la Loma Mineral: polymetallic sulphideBidding process of Ingeominas
Main exploration projects
Project: TarairaLocation: Vaupés (Taraira)Ownership: Cosigo-Frontier Mining CorporationMineral: GoldBidding process of Ingeominas
Main exploration projects
Project: MocoaLocation: PutumayoOwnership: B2GoldMineral: Copper and MolybdenumInferred resource:?????Drilling: 5.000 ml
Main exploration projects
Project: MirafloresLocation: Risaralda (Quinchía)Ownership: B2GoldMineral: Gold (Vein)Inferred resource: 0.8 MM oz
Main exploration projects
Project: La ColosaLocation: Tolima (Cajamarca)Ownership: Anglo Gold AshantiMineral: Gold Inferred resource: > 10 MM oz
Main exploration projects
Project: Angostura (California)Location: SantanderOwnership: Greystar ResourcesMineral: Gold (open pit)M&I Resource: 7 MM ozInferred resource: 6 MM oz. Drilling: > 200.000 ml
Main exploration projects
Main exploration projects
Project: Mandé NorteLocation: Chocó-AntioquiaOwnership: Muriel Mining CorporationMineral: polimetálicosResources: begining exploration
Other companies with presence in Colombia
•Rio Tinto (with some joint ventures)•Vale (bought mine and port from Argos•Barrick•MPX•Mitsui•Several junior companies
AGENDA
1. Colombia’s general overview 2. Coal and precious metal potential in
current mining districts. 3. Ongoing exploration and production
projects4. Colombia’s infrastructure 5. Conclusions
498 KM
BUENAVENTURA
BOLOMBOLO
LA FELISA
LA TEBAIDA
Railroad Projects
SANTA MARTA
245 KM
CHIRIGUANA
PUERTO BERRIO
1045 KM
LA DORADA
FACA
VILLA VIEJA
ENVIGADOCABAÑAS
PTO SALGAR
BUENOS AIRES
LA ISLA
BOGOTA
BELENCITO
Atlantic Concession
Pacific Concession
Central Railroad System
Carare
LA CARO
BARBOSA
LA VIZCAINA
CALIYUMBO
PALMIRA
PALMIRA
Multi purpose Railroad
Bogotá
Valle
Altiplano
Atlantic Railroad Concession
SANTA MARTA
245 KM
CHIRIGUANA
Increased capacity from 22 MM to 45 MM Tones
Capacity of 24 trains per day in both directions for segment La Loma - Puerto Prodeco.
Ongoing construction of two way railroad in segment La Loma – Puerto Drummond. Completion of first 60 Km of total 192 Km project. Total project to be completed in July 2009.
Concessionaire: FENOCO S:A
Pacific Railroad Concession Total 498 Km - 385 Km
(78,1%) repaired.
The concession contract was trasfered to Ferrocarril del Oeste, as per ammendment No 15 of July 10, 2008
498 KM
BUENAVENTURA
BOLOMBOLO
LA FELISA
LA TEBAIDA
131.804,4888.827,8
10.7402,284.424 77.547
300.000
600.000
1.100.000
0
200000
400000
600000
800000
1000000
1200000
2004 2005 2006 2007 2008 2009 2010 2011
Suma de TONELADAS TRANSPORTADAS
Suma de TONELADAS PROYECTADAS CON LACESION
1.045 KM
LA DORADA
FACA
ENVIGADOCABAÑAS
PTO SALGAR
BUENOS AIRES
Central Railroad System
VILLA VIEJA
CHIRIGUANA
30 year concession
US$ 450 MM Contract
Bidding Documents: February 2009
Closing: April 2009
Total 1.045 Km
MODO FÉRREO
Lenguazaque Lenght 368 Kilometers
Segments Facatativa- Km 5 (Bogota)40 Km
Km 5 ( Bogota) - La Caro 29 KmLa Caro – Belencito 228
KmLa Caro – Lenguazaque 66
Km
Products Cement, lime, plaster, scrap, Containers, steal, iron, clinker, coal.
ALTIPLANO CUNDIBOYACENSE CONCESSION
Project in structuring stage
New Railroad Project
Central Rail Road System
Pacific Concession
AltiplanoCundiboyacense
Atlantic Concession
Second wayChiriguana- Cienaga (Projected)
CARARE
Puerto Barranquillac
Puerto Santa MartaPuerto Dibulla
Chiriguana Feasibility study as per
agreement between Government of Colombia (INVIAS) and Government of Brazil.
Incorporation of a promotion development company to study the required infrastructure for Coal.
Carare Rail Road
La Vizcaina
Existing Coal Ports
Puerto Bolívar (29 MM Tones/YearCarbosan (2 MM Tones/year, Concession 2013)
Prodeco (4 MM Tones/Year Concession 2009)
Drummond (22 MM Tones/Year Concession 2023)
Soc. Portuaria de Ciénaga (0 MM Tones/Year Concession 2018)
Cementos del Caribe (1 MM T/Year)
Atlantic Coal (0.9 MM T/Year)
Soc. Portuaria de Barranquilla (0.5 MM T/Year)
Colclinker (1 MM T/Year)
Soc. Portuaria de Cartagena (0.2 MM Tones/Year)
Soc. Portuaria Golfo de Morrosquillo (0.1 MM T/Year)
Expected New Coal Projects
PUERTO MULTIPROPOSITO BRISA S.A. (0.5MM Tones/year-3MM T/Year)
PUERTO NUEVO , Coal (30MM Tones/Year-60MM T/Year)
Carbones del Carare S.A. (3MM T/Year)-5.4MM T/Year)
Cartagena Multipurpose CMT S.A. (0.2MM T/Year)
Graneles del Golfo S.A. (0.3MM T/Year-1.5MM T/Year)
Sociedad Portuaria del Sinú (1 MM T/Year)
BUENAVENTURA´S PORTOptimization OpertationDredging channel of accessCapacity: 1 MT/YrDraft 36´
AGUADULCE PORTCapacity: 2.5 MT/YrDraft 32´
PROJECTED COAL PORTS EXPANSION IN THE PACIFIC OCEAN
PA
CIF
IC O
CE
AN
BUENAVENTURA
Km 730
Km 886 Km 886
Km 630
Km 450
Km 598
Km 445
Km 0
Km 0
PRINCIPALES PUERTOS SOBRE EL RIO MAGDALENA
PUERTO SALGAR
BOGOTA
PUERTO SEVIEZ
LIZAMA
SAN ROQUE
VALLEDUPAR
CARMEN DE BOLIVAR
BOSCONIA
AUTOPISTA RUTA DEL SOLAUTOPISTA RUTA DEL SOL
SANTA MARTA
1.130KM
AUTOPISTA DE LA NUEVA INDEPENDENCIAAUTOPISTA DE LA NUEVA INDEPENDENCIA
Peaje Nuevo Peaje Existente
Current status of the Project: MOU betweenINCO-INVIAS-GOBERNACIÓN DE ANTIOQUIA-IDEA. The project is in the financial structuring stage.
LA YE
CAUCACIA
SAN ROQUE TRANSVERSAL AUTOPISTA DE LAS AMERICAS Lenght : 1.948 Km
PARAGUACHON
RIOHACHA
LA PAZ
PALO DE LETRAS
EL TIGRE
MONTERIA
CRUZ DEL VISO
NECOCLÍ
DISTRACCION
LA FLORIDA
CUESTESITAS
SANTA MARTA
BARRANQUILLA
CARTAGENA
1.948 Km
AUTOPISTA DE LAS AMERICASAUTOPISTA DE LAS AMERICAS
SAN JOSE DE GUAVIARE262 KM
PUERTO GAITAN
191 KM
SARAVENA
72 KM
ARAUCA
175 KM
TAME
442 KM
VILLAVICENCIO
BOGOTA
87 KM
ARTERIAS DE MI LLANURAARTERIAS DE MI LLANURA
Current status of the Project: Technical studyAssessment of required investmentStructuring of concession
AGENDA
1. Colombia’s general overview 2. Coal and precious metal potential in
current mining districts. 3. Ongoing exploration and production
projects4. Colombia’s infrastructure 5. Conclusions
1. Colombia is still unexplored: huge geologic and mining potential due to the existence of two different geological environments.
2. Strategic geographic location(Best corner of the Americas) 3. Democratic security policy(improved security to access
exploration and production areas). 4. Attractive investment regulation: Free access to global markets,
tax incentives, legal stability contracts, FTZ regime. 5. Attractive mining policy6. Major global players have already been successful in
Colombia: BHP Billiton, Angloamerican, Xtrata, Drummond, Glencore, Vale, Votorantim. Other major players show strong interest in discovering Colombia: Barrick, Mitsui, etc.
7. Competitive human capital
¿Reasons to invest in Colombia’s mining sector?
8. Legal stability. Colombia has a proven track record of respect for contractual terms and regulations. Moreover, Colombia offers investors the possibility of signing Legal Stability Contracts with the Government to protect investments against adverse changes in law.
9. Attractive Mining Code.
10.Institutional Commitment to the development of the Sector. Personalized services to investors, expedite processes, clear rules, institutional support, availability of high quality geological, geochemical and geophysical data.
11.Alignment of interests between the Government and private investors to develop and grow the mining sector.
12.Business enviroment is improving (Doing Business Report) (66 al 53)
13.The mining investor´s perception has been improving (Fraser Institute Report) (56 al 46)
.
¿Reasons to invest in Colombia’s mining sector?
Colombia offers
unparallel opportunities for investment in mining
THANK YOU!