Feria Minera 2009

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




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




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


Project: CMU-Tesoro-JaguaLocation: CesarOwnership: GlencoreMineral: CoalProduction/Year: 4,4 MM Tones

Project: CalenturitasLocation: CesarOwnership: GlencoreMineral: CoalProduction/Year: 3,7 MM Tones


Project: La FranciaLocation: CesarOwnership: Coal CorpMineral: CoalProduction/Year: 1,5 MM Tones


Project: CerromatosoLocation: CórdobaOwnership: BHP Mineral: FerronickelProduction/Year: 108 MM pounds


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.


Project: Lower MarmatoLocation: Caldas (Marmato)Ownership: Mineros Nacionales Mineral: Gold (Vein)Production/Year: 30.000 oz


Project: Paz del RíoLocation: BoyacáOwnership: VotorantimMineral: Iron Ore Production/Year: 624.000 Tones


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


Project: Upper MarmatoLocation: Caldas (Marmato)Ownership: Colombia GolfieldsMineral: Gold (Veins)Inferred resource: 2.5 MM ozDrilling: 32.000 ml


Project: GramaloteLocation: Antioquia (San Roque)Company: B2Gold-AGAMineral: Gold (Vein)Inferred resource: 2.5 MM OzDrilling: 320.000 ml / 450 ml deep.


Project: QuebradonaLocation: Antioquia (Jericó)Ownership: AGA – B2GoldMineral: GoldInferred resource: 1.5 to 2 MM ozDrilling: 6.000 ml / 300 ml. deep


Project: San JorgeLocation: CórdobaOwnership: BHP BillitonMineral: Coal Bidding process of Ingeominas


Project: AcandíLocation: ChocóOwnership: Anglo American Colombia ExplorationMineral: polymetallic sulphideBidding process of Ingeominas


Project: Pantanos PegadorcitoLocation: Antioquia (Frontino-Dabeiba)Ownership: Carbones de la Loma Mineral: polymetallic sulphideBidding process of Ingeominas


Project: TarairaLocation: Vaupés (Taraira)Ownership: Cosigo-Frontier Mining CorporationMineral: GoldBidding process of Ingeominas


Project: MocoaLocation: PutumayoOwnership: B2GoldMineral: Copper and MolybdenumInferred resource:?????Drilling: 5.000 ml


Project: MirafloresLocation: Risaralda (Quinchía)Ownership: B2GoldMineral: Gold (Vein)Inferred resource: 0.8 MM oz


Project: La ColosaLocation: Tolima (Cajamarca)Ownership: Anglo Gold AshantiMineral: Gold Inferred resource: > 10 MM oz


Project: Angostura (California)Location: SantanderOwnership: Greystar ResourcesMineral: Gold (open pit)M&I Resource: 7 MM ozInferred resource: 6 MM oz. Drilling: > 200.000 ml



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




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 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!

Feria Minera 2009

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