Source: Geological Survey of Colombia, Annual Survey of Mining Companies: 2017 (Fraser Institute).
Cocos and NazcaTectonic plate
Caribbeantectonic plate
South American tectonic plate
Andes System
PacificOcean
AtlanticOcean
Caribbean Sea
AmazonianCraton
2017 Best Practices Mineral PotentialIndex
Strategic geographic location:Access to the Pacific and Atlantic Oceans.Low logistic costs due to proximityto the Panama Canal.
Colombia ranked 3rd in Latin America
A country to exploreColombia:
Land of mining opportunities
Progress: 32%;Target: 35% by 2017.
HIGH POTENTIAL GOLD
COPPER
URANIUM
PHOSPHATE
Source: www.andesresources.com/wp-content/uploads/2017/11/South-America.jpg. Geological Survey of Colombia- GSC, National Mining Agency- NMA.
KNOWLWDGE OF SUBSOIL
GEOLOGICAL
GEOPHYSICAL
GEOCHEMICAL
70%
60%
35%
A country to exploreColombia:
Land of mining opportunities
Emeralds
Coal
Nickel
Gold
Copper
LATAM
1
1
5
4
6
1
11
13
18
42
WORLD
Potential Areas
3,705Mining Concession
Proposals(6,006,710 ha)
1,344 Titles - Exploitation(1,427,098 ha)
300 Titles - Construction & Assembly(490,195 ha)
128 Titles - Exploration(206,802 ha)
1,772 Titles(1.86% of national territory)
Gold deposits are clustered in districts associated with metallogenic belts in the provinces of Antioquia, Santander, Tolima, Huila, Caldas, Nariño, Cauca and Bolivar. Deposits are also found along the Pacific coast, which are formed by the erosion
of the western branches of the Andes mountain chain. With an average tenor between 0.7 g/t and 10.8 g/t Au.
Gold mining activities
Marmato
El Roble
Cisneros
Buritica
CondotoChoco
Yaraguá
El Limon
Aluvial Nechi
Mina Guayos
Mina La Ye
Mina Carla
Segovia
Gramalote
Santa Rosa
2017: Rionegro, Alicanto MiningCondoto, Ulloa Resources
2016: Buritica, Continental GoldCisneros, Antioquia Gold
2015: Gramalote, AngloGold AshantiSanta Rosa, Red Eagle
Colombia:Land of mining opportunities
“In 2017, Colombian gold exports increased 21.7%”
2015---------5,463Ton
2016---------8,493Ton
2017--------9,355Ton
Colombia presents three (3) belts of copper porphyries in which important prospects for copper are found:
Central: El Alacran, Quebradona, El Pisno, Piedrasentada-Dominical and Mazamorras. Western: Acandi, Murindo, Pantanos-Pegadorcito, Andagueda and Piedrancha. Eastern: Andes, Infierno-Chili, Dolores and Mocoa.
491 Titles(0.68% of national territory)
252 Titles - Exploration(383,693 ha)
88 Titles - Exploitation(190,949 ha)
151 Titles - Construction & Assembly(205,900 ha)
Potential Areas
1,174Mining Concession
Proposals(2,238,309 ha)
Source: NMA, Aticomining.com
Copper mining activitiesColombia:
Land of mining opportunities
In Colombia deposits with an average tenor between
0.70% and 3.46% Cu, are explored.
El Roble
San Matias
Anza
El Dovio
Quebradona
Pantanos
Murindo
Cobrasco
La Mina
Gold production is expected to increase by 44% in 2020
Projects underexplorationInvestments 2017
2020 - Buritica
2022 - Gramalote
2018 - Rionegro
2018 - Cisneros
Projects with an approved environmental license
Colombia:Land of mining opportunities
A country to explore
Source: DANE, NMA.
Total area
114,218,901 Ha 8,285 Mining titles
0.25 % Exploration
Titled area
3,933,924 Ha
0.64 %Constructionand assembly
2.55%Exploitation
3.44%of the territory
Construction materials
41%
Gold and precious metals
21%
Other minerals18%
Coal
Emeralds
16%
4%
MINERALS
Colombia:Land of mining opportunities
Mining, an opportunity for peace
Is the peace process an opportunity or a risk for the
mining sector?*
* Survey Brújula Minera answered by 266 mining companies in Colombia
Opportunity
Risk
Not sure
Colombia:Land of mining opportunities
Tax incentives in 344 ZOMAC municipalities
53% of the territory
“Most Affected Areas by the Armed Conflict”
** 50% between 2017 and 2021, 75% between 2022 and 2027 and 100% from 2027 onwards.
Special tax regimeDiscounted income tax ratefor the next 10 years**
Public works in lieu of taxesCompanies can pay for publicworks in these areas in lieu ofup to 50% of taxes.
We encourage investment in mining
MINING EXPLORATION:Investments in assets for the assessment and exploration of non-renewable natural resources, will be amortized using the straight-line method over a period of 5 years.
FOREIGN DIRECT INVESTMENT IN MINING: A tax refund certificate (CERT) is granted to companies increasing their investments in hydrocarbon and mining exploration activities, and will correspond to a percentage of the total increase in the investment.
PUBLIC WORKS IN LIEU OF TAXES:Companies dedicated to the exploration and exploitation of mineral resources will be able to take advantage, for up to 50% of their taxable income, of the mechanism of paying for public works in lieu of taxes.
RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION IN THE MINING SECTOR:A 25% reduction on income taxes is available for investments in research, technological development and innovation projects.
IMPORTS OF MACHINERY:Sales taxes paid on purchases or imports of heavy machinery for basic industries can be discounted from income tax.
Colombia:Land of mining opportunities
HEALTH AND PAYROLL TAXES: An exemption from payroll taxes and contributions to the social security system for workers earning less than ten (10) OMMW* is granted to income tax paying companies
* The official minimum monthly wage in Colombia (OMMW) for year 2018 is COP $781,242 (USD $282.41). Average exchange rate USD/COP: 1 / 2,766.29 (April -2018).
ENVIRONMENTAL PROTECTION:A 25% reduction on income taxes is available for investments in conservation, control and improvement of the environment.
How to invest?
Two ways to obtain a Mining Title
ApplicationprocessFirst-come
First-served
Negotiationof an existing title
Any mineral Any available area Any natural or legal
person, Colombian national or foreigner
General requirements
Mineral rights can be freely transferred between investors
Concession Contract
Exploration Constructionand
assembly
Exploitation
30 years renewable for 30 additional years
Concertation with local authoritiesPublic Hearing
Colombia:Land of mining opportunities
Colombia will be the 3rdcountry in
LATAM having a Resources and Reservations Code –May 2018
Sustainable and responsible mining
Territories
Government
Companies CommunitiesImproving governance and transparency
in revenues from mining activities."Colombia is a member of the
International Board of Directors."
Colombia:Land of mining opportunities
Colombia is committed to promoting responsible mineral supply chains, in
accordance with OECD guidelines.
CONCERTATION
168 local authorities
PUBLIC HEARINGS
28 municipalities
73Titles granted
Colombia:Land of mining opportunities
An economic compensation must be paid during the exploration and construction and assembly
stages
• Official minimum daily wage in Colombia – OMDW / hectares• OMDW 2018: COP $26,041.40• Average exchange rate USD/COP: 1 / 2,766.29 (April -2018)
EXPLORATION FEE
Number ofHectares
0 to 5 yearsOMDW/ha
5 to 8 yearsOMDW/ha
8 to 11OMDW/ha
0 - 150 0.5 0.75 1
151- 5,000 0.75 1.25 2
5,001 –10,000
1.0 1.75 2
Economic considerations
An investment destination!
Source: DANE, Central Bank, S&P Ratings, Bloomberg, Doing Business 2018, Unctad- Global Investment Trend Monitor, No28.
3rd Largest population in Latin America
49.7 million inhabitants.
4a Largest economyin Latin America
GDP 2017 USD $237.7 B• Financial sector 23%
• Services 17%• Trade and tourism 14%
• Manufacturing sector 12%
• Mining sector 2%
+3.2%Average GrowthIn the past 5 years
3rd
Most important destinationfor FDI in LATAM
USD $14.5 billion in 2017
Doing Business Ranking2018
4 59 LATAM --- World
INVESTMENT GRADE
BBB-
BBB
Baa2
Colombia is working towards meeting the member country standards and is expected to
join the OECD in June
2018
12 Free Trade
Agreements -FTAwith
55 countries
Colombia:Land of mining opportunities
An investment destination!
Source: DANE, Migration Colombia, Ministry of Commerce, Industry and Tourism.
Australia is currently negotiating a Free Trade
Agreement with the Pacific Alliance member countries: Colombia, Chile, Mexico and
Peru.
Colombia:Land of mining opportunities
56 Australian enterprises are established in Colombia,
including IFM Investors, Macquarie, Orica and Amcor.
are mining companies.36
Exports(to Australia)
Imports(from Australia)
FDI(from Australia)
2016(USD Million)
48
43
7
57
42
24
2017(USD Million)
Tourism2017
The Australian Government opened an
Embassy in Bogota, Colombia in 2017
16,837People
8,140 People
Average GrowthIn the past 3 years
+42%
+45%