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Presentation - Mining as an Engine for Prosperity in ColombiaHenry Medina - Vice Minister of Mines
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Mining as an engine for prosperity in COLOMBIA
Henry Medina Vice Minister of Mines
Mining sector in Colombia plays a significant role
Source: Colombia Geological Service for Mining National Hydrocarbons Agency DIAN
In 2011 royalties grew 34%
ROYALTIES & TAXES
In 2011 22% of exports came from mining sector
Coal example - Growth is possible
Source: Colombian Geological Service
Production 85.8 MTn (2011), Increase 15,4%
Reserves 6,900 MTn
Ranking 6th exporter and 10th producer in the world
Characteristics Thermal coal: 96% Metallurgic coal: 4%
Thermal capacity 10,000 - 12,000 BTU
Growth levers • Expansions and new projects • Adequacy of infrastructure system • Environmental licensing and social support • sustained security
COAL PROJECTS
Cerrejón
La Loma El Descanso Calenturitas La Francia
Paz del Río MILPA
Interamerican Coal
Carbocoque Uniminas
Centromin
COAL PRODUCTION MTn
POLICIES
Organise the mining sector
Grow the mining sector
Mining formalization Ilegal mining eradication
Safety & Health technical formation
INSTITUTIONS
Vice Ministry of Mines
Colombian Geological Service
National Agency of Mining
National Agency of Infraestructure
National Agency of Environmental Licenses
REGULATION
Private – Public Alliances Law
Strategical Minerals
Strategical Areas
Mining Code Reform
We are making strategical decisions
2010 - 2014
We are making changes to become minning leaders
New Web readicator, and modern arquitecture with World Bank advisory
Suboptimal and disorganised use of mining resource
Deficient government oversight of mining activity
No clear line of sight of major projects from early stages
No clear governmental entity to promote artisanal and small scale mining
No formal inter-institutional coordination
FROM TO
Strong National Agency of Mining
Ingeominas into focused Colombian Geological Service
Earmarked resources for strong fiscalization process & formalization program
Specialized Projects of National Interest (PIN) Unit
Incomplete and weak cadastre
New Vice Ministry of Mines with 2 Directorates
Lack of knowledge of colombian mining potencial
We have defined strategical minerals
Thermal & Metalurgical Coal Gold Platinum Magnesium Minerals Phosphate Minerals
Cooper Iron Uranium Niobium & Tantalum (Coltan) Potassium Minerals
Source: Colombian Geological Service
We have defined Strategical Mining Areas
Mining Strategical Areas 2, 9 millon Has
2,53% of National Territory
Mining titles - 9.133 5,05 millon Has 4,42% of National Territory
We can grow in other areas
GOLD Tn
SILVER Tn
Source: Colombian Geological Service
LISTED TMX FIRM PROJECTS
Resources Measured & Indicated, Inferred Au Moz
Resources Measured & Indicated, Inferred Ag Moz
31.4 90.1
Antioquia Bolívar Caldas Cauca Cesar
Chocó Huila
Nariño Tolima
Risaralda Putumayo
Valle del Cauca Norte de Santander
GOLD & SILVER AREAS / PROVINCES
Gold and Silver 2.3 m ha
Strategical Areas 2.9 m ha
Strategic Mining - Award Rounds Preliminary
• Preliminary identification of Blocks
• Strategic environmental and social planning
• Final demarcation of Blocks
• Elaboration of Data Packages
PREPARATION LAUNCH
• Lauching Session
• Sale of Data Packages
• Road Shows
• Call for Preliminary Proposals
Ronda 2013
2012
• Award
• Signing of agreements
AWARD EVALUATION
• Admission and evaluation of preliminary proposals
• Publication of the Participants List
• Deposit of Proposals -Public Session
• Evaluation of Final Proposals
• Exploration Track Record and activity commitments
• Level of state partnership
CRITERIA OPTIONS (WIP)
Source: Ministry of Mines and Energy
O. ATLANTICO
O. P
AC
ÍFIC
O
Barrancaber
meja
Buenaventur
a
Puerto
Salgar
Chiriguaná
Cupica
Dibulla
Bogotá
Medel
lín
Cali
La Tebaida Ibagué
Cartago
Bucaramang
a
La Felisa
Bolombolo
Pto. Berrío
La
Isla
Cúcuta
La Vizcaína
Vélez Duitama
Santa Marta
Cerrito Cisne
ros
Capulco
P.Araújo
La Mata
Chiquinquirá
Pto. Boyacá
B.del
Carare
RAIL ROADS
Rail Road Distance Actual
Capacity Required Capacity
FENOCO Chiriguaná – Santa Marta
245 kms Line 1 45 mill tn year
Lines 1 -2 90 mil tn year
CERREJÓN Barrancas – Puerto Bolívar
150 Kms 70 mll tn year
150 mil tn year
We are working on infraestructure projects
2 Major rail road projects with access to Atlantic
20 million tn with Carare Train Major Project will be key for evacuation of minerals from the interior
Source: Ministry of Mines and Energy
COAL PORTS
13 ports in 5 provinces La Guajira, Magdalena, Atlántico, Bolívar and Valle with access to Atlantic Sea
We are working on infraestructure projects
Colombia exports by ports around 92% of main production of Coal (80 million tn) that
represents $1.3 billon pesos to economy
If we want to export Needed Capacity
115 mll tn 138 mill tn
3 Major Projects Puerto Brisa - Puerto Drummond – Puerto
Nuevo
Today Ports capacity is around 90 million tn
Source: Ministry of Defense
Attacks against infrastructure
Ilegal Armed Groups Attacks
Security improvements in recent years have also benefited the oil
and mining sector
And creating appropriate security conditions
2840
-10
10
30
50
Dic. 2010 Dic. 2011
No
. Co
mp
anie
s
Companies Listed on TSX with miningproperties in Colombia
81 Projects Source: www.tmx.com, 24th february 2012 - MME
During last ten years Canadian companies have been working in Colombian projects We expected new investors to work with us
We are partners and allies
It will be posible to achieve goals and results
Source: Colombian Geological Service
3,800 3,697
3,410
2,908 3,136
3,502
1,161
1,678
2,099 2,275
1,567 1,328
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
COOPER - Tn Antioquia
Caldas Cauca Cesar
Chocó Huila
La Guajira Nariño
Norte de Santander Putumayo
Quindío Risaralda
Tolima Valle del Cauca
COOPER AREAS/PROVINCES
Strategical Areas- 2.900 ha
Cooper 2.157 ha
LISTED TMX FIRM PROJECTS
Resources Measured & Indicated Cu MLb
765,5
We are working on infraestructure projects
Roads are the only mean of transportation off all Metalurgical and Coque Coal produced in Cundinamarca, Boyacá, Santander and Norte de Santander provinces
The main production of this provinces is around 8 million tn exported principally by Barranquilla, Cartagena and
Buenaventura Ports
Source: Ministry of Mines and Energy
RAIL ROADS
Mining sector in Colombia plays a significant role
Source: Banco de la República
20% of FDI in 2011 was to mining, increasing 32% over 2010
In 2011 22% of exports came from mining sector
1,523
2,639 3,320
4,302 5,208
6,346
7,447 8,154
9,421
12,454
13%
20% 20% 20% 21% 21%
20%
25% 24% 22%
0%
5%
10%
15%
20%
25%
30%
0
3,000
6,000
9,000
12,000
15,000
18,000
2002 2003 2004 2005 2006 2007 2008 2009 2010(pr)
2011(pr)
% M
inin
g Ex
po
rts
Mill
ion
s U
SD F
OB
Mining Exports Mining/Total Exports
0.1 0.3 0.3 0.5 0.6 0.7 0.7 0.9
0.6 0.9
1.2
2.1 2.5
1.7
2.7 3.9 14%
23%
20% 19%
21%
29%
19% 18%
0%
5%
10%
15%
20%
25%
30%
35%
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011
% M
inin
g
USD
Bill
ion
s
Mining Hydrocarbons % Mining/Total
We want to bcome Leaders in mining
Efficient governmental institutions and responsible mining sector
Access mining potential and consolidate growth
Prosperity for Colombia
