110502 Colombia Mining

7/29/2019 110502 Colombia Mining

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COLOMBIA MINING OUTLOOK

Bogot, mayo de 2011


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Location: North Corner of South America.Only SA Country with access to Atlantic & Pacific

Oceans.Surface Area: 1,141,748 Km2. 15% of Australia.Population: 42 Million. (75% urban, 25% rural).Third Largest spanish-speaking population in America

Capital: Bogot (7 Million inhabitants)

GDP* US$ 240 BillionFourth largest economy in South America.

GDP/Capita* US$ 4989

FDI (2010) US$ USD$6.760 million

Literacy Rate: 94.2%System of Government: Presidential Republic.Balance of powers between executive, legislative &judicial branches.

Colombia Basic Figures

*: International Monetary Fund2008.


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ANDI is the National Business Association of Colombia. It

was founded in september 11 of 1944. It has more than a1,100 colombian private companies of different industrialsectors that produce goods and services.

ASOMINEROS was founded in 1932 to represent the

organized mining industry. It has 36 members. The ASOMINEROS Chamber as part of ANDIs

Organization was born in may 2003, as an alliance toencourage the growth of the mining sector in Colombia.

Our main purpose is to promote and maintain an optimumbusiness environment, through participation with the publicsector, for the sustainable development of Colombiasmining industry.


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Production Mining companies:

Cerromatoso (BHP Billiton). (Open Pit Nickel Mine).Cerrejn (BHP Billiton, Anglo American y Xstrata). (Open pit Coal Mine).Drummond Colombia. (Drummond USA). (Open pit Coal Mine).Prodeco (Xtrata). (Open pit Coal Mine).Carboantioquia, Carbones del Caribe, Carbones del Cesar (Coal).Carbones San Fernando, Mina La Margarita (Coal).

Mineros S.A., Mineros Nacionales (Gold).Brinsa S.A. (Salt).Minera El Roble (Copper concentrades).Cementos Argos, Cemex Colombia (Cement).Sumicol, Agregados del Norte, Calina, Ladrillera San Cristbal,Prominerales, Triturados El Chocho (Construction materials).

Exploration mining companies:AngloGold Ashanti, Greystar, Mitsui, Rio Tinto, Vale, Corporacin Minerade Colombia, Grupo de Bullet, Cosigo, Carboandes, Continental Gold.

Services and Traders companies:Geominas, Serviminas,CIIGSA, Fundicin Escobar, Vector Asenco Colombia.

MEMBERS


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COLOMBIAN MINING PRODUCTION 2010

Cerrejn

CerromatosoDrummond

Xstrata

Mineros

Norte de Santander

Boyac

Cundinamarca

Carbn: 74,3 Mtons.Cerrejn: 31 Mt

Drummond: 21, MtProdeco: 5,33 MtOtros Guajira y Cesar: 9,7 Mt.Otros Interior: 7,5 Mt

Nquel: 49.443 Ton

(Cerromatoso)

Oro: 53,6 Ton.Plata: 15,3 TonPlatino: 0,97 Ton

Cobre: 3.555 Ton

Caliza para Cemento: 11,7 Mt.

Esmeraldas: 5.230 Miles dequilates


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Fuente: Ingeominas

One of the major coal producers in theworld: 74.3 million tons (2010).

Cerromatoso is the only producer of

nickel, recovered their normal volumes

with more of 49 thousand tons (2010)

(Gold)

(Coal)

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Milesdegramos


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Cmara ASOMINEROS

Total GDP Growth Mines and hydrocarbons GDP Growth Mining GDP Growth

Mining share as % of total GDP

Mining exports (Million US$) Mining exports as % of total exports

Mining Foreign direct investment (Million US$)

Mining Royalties (Million US$)

Contribution of Mining Sectorto Colombian economy

Source: DANE, Banco de la RepblicaMinisterio de Minas y Energa

2007

6,9%2,9%

5,6%

1,5%

6.34621,1%

1,100

468

2008

3,5%7,3%

1,3%

1,5%

7.44719,8%

1,798

645

2009

1,5%11,4%6,7%

1,6%

8.15424,8%

3.025

708

2010

4,3%11,1%2,2%

2,0%

9.42123,7%

2.055

650


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Fuente: DANE

EXPORTACIONES MINERAS AO 2010(Millones US$)

Source: IMCPortal (Portal de Informacin Minera Colombiana) sobre la base de estadsticas oficiales del Banco de la Repblica.


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USDMillones

Minas y Canteras (incluye carbn)

Resto de Sectores

Mining Investments shown in blue boxes

Source: Banco de la Repblica

El 30% is mining


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Estimated investment in the Mining Sector(2010 to 2020)

SECTORINVERSIONES

ESTIMADAS(MILLONES DE DOLARES)

Expansiones en Carbn y nuevos proyectos ,11111

Expansiones en metalesbsicos y nuevos

proyectos

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Expansiones en Oro y nuevos Proyectos ,1111

Actividades en Exploracin,

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TO CONFIRM GOLD MINING RESERVES OF NEW DISCOVERIES. ESTIMATED RESERVES OVER 25 MILLION OUNCES .

TO KEEP GROWING TREND IN COAL MINING PRODUCTION.

DUPLICATING CURRENT COAL PRODUCTION IN NEXT 10 YEARS,

UP TO 200 MILLION TONS PER YEAR.

TO DEVELOP PLANNED NICKEL PRODUCTION EXPANSIONS.

WITH NEW PRODUCTION LINE AND NEW COAL FIRED POWERSELF GENERATION PROJECT.

TO CONTINUE EXPLORATION BOOM FOR METALS.

TO IMPROVE ENVIRONMENTAL APPROVAL PROCESSES.

TO DIMINISH MINE DEVELOPMENT TIMING.

Challenges for Colombian MiningIndustry


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TO DEVELOP NEW GOLD MINING RESERVES.

FEASIBILITY STUDIES, ENGINEERING DESIGN, PROJECTCONSTRUCTION MANAGEMENT, EQUIPMENT SUPPLIES &MANUFACTURING, ENVIRONMENTAL MANAGEMENT, CONSULTINGSERVICES.

TO KEEP GROWING TREND IN COAL MINING PRODUCTION.

COAL TECHNOLOGY APPLICATIONS, MINERAL HANDLINGSYSTEMS, EQUIPMENT SUPPLIES & MANUFACTURING, MININGPROCESSING & MAINTENANCE TECHNOLOGY, CONSULTINGSERVICES.

TO DEVELOP PLANNED NICKEL PRODUCTION EXPANSIONS.

PROJECT CONSTRUCTION MANAGEMENT, EQUIPMENT SUPPLIES &MANUFACTURING, CONSULTING SERVICES.

TO CONTINUE EXPLORATION BOOM FOR METALS.

RESEARCH AND DEVELOPMENT, EQUIPMENT SUPPLIES &MANUFACTURING, MINERALS EXPLORATION, LAB SERVICES.

Opportunities for Industry


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Additional InformationMap: Coal areas Map: Geological Potential, Precious Minerals and Metals

Mining Districts with projects in a production stage

Source:Ministerio de Minas y Energa2009

Ongoing exploration and production projects:

Project: CerrejnProject: La Loma

Project: CMU-Tesoro-JaguaProject: La FranciaProject: CerromatosoProject: El BagreProject: Lower MarmatoProject: Paz del Ro

Project: La YProject: Ro de OroProject: Upper Marmato

Railroad Projects

Project: GramaloteProject: Quebradona

Project: San JorgeProject: AcandProject: Pantanos PegadorcitoProject: TarairaProject: MocoaProject: Miraflores

Project: La ColosaProject: Angostura (California) Other


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Thermo

Metalurgic

Source: Ministerio de Minas y Energa2009

Geological Potential: Coal


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Potential Prioritized Zones Minerals

1. Nort west of the Department ofAntioquia

Copper, Gold,Molybdenum

2. River Cauca Cannon Gold and basicmetals

3. Departments of Nario andPutumayo

Gold and basicmetals

4. Colombian East Gold

5. San Lucas Mountain Gold

6. Santander Mountain Range Gold

7. Departments of Tolima and Huila Gold and basic

metals

Source: Ministerio de Minas y Energa2009

Geological Potential: Precious Minerals and Metals

Fuente: INGEOMINAS

1

1

1

1

11

1


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CoalLimestoneEmeraldsGoldOtherFerronickelIron OreConstructionMaterialsGold, silver,

platinumPhosphoricRock

Mining Districts with projectsin a production stage

Legend

Mining Districts with projects in a production stage


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Main projects in aproduction stage

Project: CerrejnLocation: GuajiraOwnership:

33% BHP Billiton

33% Xtrata 33% Anglo American

Mineral: CoalProduction/year: 31 MT


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Project: La Loma, El DescansoLocation: CesarOwnership: DrummondMineral: CoalProduction/Year: 21 MT

Main projects in a

production stage


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

Project: CalenturitasLocation: Cesar

Ownership: Glencore, othersMineral: CoalProduction/Year: 3,7 MMTones

Main projects in a

production stage


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Project: La FranciaLocation: CesarOwnership: CNR

Mineral: CoalProduction/Year: 1,5 MMTones

Main projects in a

production stage


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Project: CerromatosoLocation: CrdobaOwnership: BHP

Mineral: FerronickelProduction/Year: 49 Kt

Main projects in a

production stage


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Project: El BagreLocation: AntioquiaOwnership: Mineros S.A.

Mineral: Gold (Alluvion)Production/Year: 80.000 ozWill increase production in25.000 oz per yearwithoperation of two new dredgesacquired in Brazil.



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Project: Lower MarmatoLocation: Caldas (Marmato)

Ownership: Mineros Nacionales,Colombia Gold, MedoroMineral: Gold (Vein)Production/Year: 30.000 oz



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Project: Paz del RoLocation: Boyac

Ownership: VotorantimMineral: Iron OreProduction/Year: 77 Kt

Main projects in a

production stage


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Project: La YLocation: Antioquia(Zaragoza)Ownership: Mineros S.A.

Mineral: Gold (vein /underground)Proven Reserves: 300.000ozIt will start production inFebruary or March 2009. It isconducting additionalexploration to increase provenreserves.

Main exploration projects


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Project: Ro de OroLocation: Norte de Santander

(Tib)Ownership: Geominas andothersMineral: CoalInferred resource: 320 MM

TonesProven reserves: 60 MM Tones

Main explorationprojects


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Project: Upper MarmatoLocation: Caldas (Marmato)Ownership: Colombia

GolfieldsMineral: Gold (Veins)Inferred resource: 2.5 MM ozDrilling: 32.000 ml



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Project: GramaloteLocation: Antioquia (San

Roque)Company: B2Gold-AGAMineral: Gold (Vein)Inferred resource: 2.5 MMOzDrilling: 320.000 ml / 450ml deep.

Main exploration

projects


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Project: QuebradonaLocation: Antioquia (Jeric)

Ownership: AGA B2GoldMineral: GoldInferred resource: 1.5 to 2 MMozDrilling: 6.000 ml / 300 ml. deep

Main exploration

projects


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Project: San Jorge

Location: CrdobaOwnership: BHP BillitonMineral: CoalBidding process ofIngeominas

Main exploration

projects


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Project: Acand

Location: ChocOwnership: Anglo AmericanColombia ExplorationMineral: polymetallic sulphideBidding process of

Ingeominas



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Project: Pantanos PegadorcitoLocation: Antioquia (Frontino-Dabeiba)Ownership: Carbones de laLomaMineral: polymetallic sulphideBidding process of

Ingeominas

Main exploration

projects


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Project: TarairaLocation: Vaups (Taraira)

Ownership: Cosigo-FrontierMining CorporationMineral: GoldBidding process ofIngeominas

Main exploration

projects


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Project: MocoaLocation: Putumayo

Ownership: B2GoldMineral: Copper andMolybdenumInferred resource:?????Drilling: 5.000 ml



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Project: MirafloresLocation: Risaralda

(Quincha)Ownership: B2GoldMineral: Gold (Vein)Inferred resource: 0.8 MM oz



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Project: La Colosa

Location: Tolima (Cajamarca)Ownership: Anglo GoldAshantiMineral: GoldInferred resource: > 10 MM oz

Main exploration

projects


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



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Other companies withpresence in Colombia

Rio Tinto (with some joint

ventures)ValeBarrickMPX

MitsuiSeveral junior companies


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498 KM

BUENAVENTURA

BOLOMBOLO

LA FELISA

LA TEBAIDA

Railroad Projects

SANTA MARTA

245 KM

CHIRIGUANA

PUERTO BERRIO

1045 KM

LA DORADA

FACA

VILLA VIEJA

ENVIGADOCABAAS

PTO SALGAR

BUENOS AIRES

LA ISLA

BOGOTA

BELENCITO

Atlantic Concession

Pacific Concession

Central RailroadSystem

Carare

LA CARO

BARBOSA

LA VIZCAINA

CALIYUMBO

PALMIRA

PALMIRA

Multi purposeRailroad

Bogot

Valle

Altiplano


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Documents

110502 Colombia Mining