COLOMBIAN MINNING STATISTICAL YEARBOOK

Transcription

1 COLOMBIAN MINNING STATISTICAL YEARBOOK ï

2 î MINISTERIO DE MINAS Y ENERGÍA (Ministry of Mining and Energy) Minister Hernán Martínez Torres Vice-minister Silvana Giaimo Chávez Mining director MME Beatriz Duque Montoya Delegated Entities: INGEOMINAS General Director Mario Ballesteros Mejía UPME General Director Ricardo Rodríguez Yee Antioquia Departmental Government Governor Luis Alfredo Ramos Botero Bolívar Departmental Government Govenor Joaco Berrio Villareal Boyacá Departmental Government Governor José Rozo Millán Caldas Departmental Government Governor Mario Aristizábal Muñoz Cesar Departmental Government Governor Cristian Moreno Panezo Norte de Santander Departmental Government Governor William Villamizar Laguado Work team Vladimir Chamat Villa (Ministry of Mining and Energy) Anllela Marsela Castillo Rey (Ministry of Mining and Energy) Jorge Fernando Forero Castañeda (UPME) 2009

3 COLOMBIAN MINNING STATISTICAL YEARBOOK í Presentation T he Ministry of Mining and Energy is proud to present the first Colombian Mining Statistical Yearbook which contains the sector statistics from different views, highlighting the importance of the communication of the information with quality and seriousness, through the creation of a document which includes the socio-economical aspects of the national mining industry and an analytical description of the various activities that shape it. The Mining Statistical Yearbook becomes an instrument of communication and promotion in the national mining sector, containing the most relevant information of the sector in the last five years, that will allow the growth and improvement of the Colombian mining compared with other sectors and other Latin American countries. Also this document allows different readers to access first hand information, that will permit more in deep analysis, consultations, researches, projections and studies that will strengthen the grow and development of the Colombian mining sector. Last but not least, my most sincere acknowledgments and thanks to all the entities which provided us with the information and help facilitating the production of the yearbook, and with the hope that from now and each year we continue to publish and improve this yearbook for the benefit of the Colombian mining. HERNÁN MARTÍNEZ TORRES

4 ì Acronyms ANH: BANREP: CEPAL: DANE: DIAN: DNP: Agencia Nacional de Hidrocarburos / National Hydrocarbons Agency Banco de la República / National Central Reserve Bank Comisión Económica para América Latina y el Caribe / ECLAC Economic Commission for Latin America and the Caribbean Departamento Administrativo Nacional de Estadística / National Statistics Department Dirección de Impuestos y Aduanas Nacionales de Colombia / National Taxes and Customs Agency Departamento Nacional de Planeación Nacional / National Planning Department ICPC: Instituto Colombiano de Productores de Cemento / Colombian Institute of Cement Producers IFI: INDUMIL: INGEOMINAS: L F: LME: UPME: USGS: INCO: Instituto de Fomento Industrial / National Institute for the Industrial Development Industria Militar / Military Industry Instituto Colombiano de Geología y Minería / National Geological and Mining Institute London Fix London Metal Exchange Unidad de Planeación Minero Energética / Mining and Energy Planning Unit United States Geological Survey Instituto Nacional de Concesiones / National Institute of Concessions

5 COLOMBIAN MINNING STATISTICAL YEARBOOK ë TABLE OF CONTENTS INTRODUCCIÓN 9 1. NATIONAL MACROECONOMIC NATIONAL INDEX GDP POPULATION GDP PER CAPITA EXPORTS IMPORTS TRADE BALANCE FOREIGN DIRECT INVESTMENT NATIONAL INVESTMENT INFLATION MARKET EXCHANGE RATE EMPLOYMENT AND UNEMPLOYMENT RATE FISCAL DEFICIT AS A % OF GDP EXTERNAL DEBT INTERNATIONAL RESERVES ROYALTIES PAMERICA MINING OUTLOOK TOTAL GDP MINING GDP MINING PRODUCTION BY MINERAL Coal Gold Silver Nickel 30

6 ê TABLE OF CONTENTS Copper Steel Bauxite Zinc Iron Tin FOREIGN INVESTMENT IN MINING MINERAL PRICES COLOMBIAN MINING MINING MACROECONOMIC INDICATORS Mining GDP Mining Exports Foreign Direct Investment in Mining total and by mineral) GEOLOGIC INFORMATION Exploration Investment in Exploration MINING MANAGEMENT Mining Applications Mining Titles Contracted Area Main Projects Special Reserve Areas Indigenous People Mining Zones Afro-Colombian Communities Mining Zones Control Visits Explosive Consumption Mining Districts MINING PRODUCTION Coal Production MINING CONTRIBUTION Royalties Mining Fund Projects (MFP) Employment Generation Base Price for Royalty Liquidation SECURITY IN MINING Information on Security and Hygiene 70

7 COLOMBIAN MINNING STATISTICAL YEARBOOK é TABLE OF CONTENTS Information on Mining Emergencies Investments in Security and Hygiene TRANSPORTATION INFRASTUCTURE Railroad Ports Roads COLOMBIAN MINING IN 2009 (I SEMESTER OF 2009) MINING GDP AND MINING PRODUCTION BEHAVIOUR FOREIGN DIRECT INVESTMENT ANALYSIS BEHAVIOUR OF THE MINING ROYALTIES PRICES OF THE MINERALS 76

8 è

9 COLOMBIAN MINNING STATISTICAL YEARBOOK ç Introduction D uring the last years the mining contribution to the Colombian Economy has been progressive, due to the increase of the coal mining since the 80 s mainly in the Cesar and Guajira departments. Also, other traditional minerals focus on exportation as the ferronickel in Cerromatoso and non-traditional minerals such as gold and emeralds amongst others have contributed to the economy. Such contribution can be seen through the analysis of the mining GDP as a promoter of the growth in the national GDP and its correlation with the increase of the Foreign Direct Investment in our country. In the period comprehended between the years 2003 and 2009 (I semester) the Colombian mining presented the following advances closely related with the vision stated in the National Mining Development Plan (Plan Nacional de Desarrollo Minero) which established in the year 2019 the mining industry in Colombia will be one of the most relevant in Latin America and it will have significantly increase its participation in the national economy The relation between the Mining GDP and the National GDP presented an annual participation average of 1.54% between the years 2003 and 2009 (I semester). This relationship has been stable because of the increasing value of the Coal GDP in the Mining GDP. The coal production shows an annual average variation of 8.74% which reflects an increase, during the period , of 10.9% of the production. Between the years 2003 and 2007 the coal production grew in 39.72% from 50 million tons to almost 70 million tons. Other precious metals such as gold, silver and platinum showed an overall production of tons, distributed in tons of gold, 36 tons of silver and 5.6 tons of platinum. The boom in the sector has been related with the positive behaviour of the international prices. The value of the mining sector exports between the year 200 and August of 2009 augment to 39 million dollars FOB. The coal exports increased in million tons during the years 2003 and 2009 (I semester), which represented a raise of 70.9%. The export sales of traditional goods such as coal

10 ïð and ferronickel showed favorable international prices that motivated the large insertion of both products in the international market. The traditional mining exports (coal and ferronickel) represented a 32.17% of the total value of the Mining sector exports (including hydrocarbons) during the reference period 2000 to June 2009, with a value of million dollars FOB. The Foreign Direct Investment from the year 2000 to the year 2009 (II semester) is valued in US$ million and is expected that it boosts to US$ million in the year Within the sector policies three clear strategies are to be highlighted, which focus on: The promotion of the País Minero (the mining potential of the country): this policy procures that the Estate promotes the País Minero in the international arena. The improvement of the Productivity and Competitiveness: this requires a strategic plan, which assures in the long run the contribution of the mining sector to the sustainable development of the country and its regions, strengthening the economic and social grow of the country. Within this frame the Modelo de Gestión de Distritos Mineros (Policy model for the mining districts) has been developed, which will become a referent for the mining activities in the country and with clear goals of clustering all the mining production and competition variables that are presented in the country. Another crucial aspect of the strategy is to articulate the mining activities with both the Plan de Ordenamiento Territorial (National Land Management Plan) and the regional development plans of each one of the different municipalities that shape the mining regions. Management of the mining resources: the optimization of the supporting processes related to the mining activities, which are those associated with the management of the mining resources. After a long time of the enactment of the law 685 of 2001, which is the current mining code, the Ministry of Mining and Energy saw convenient and necessary to promote a reform to the law, with the objective of boosting the mining activity in the country. Currently the law project 010 of 2007 is waiting for the presidential approval which will modify the law 685 of The reason why the Colombian mining has establish itself worldwide starts with the commitment of the institutions lead by the Ministry of Mines and Energy, which seeks to attract foreign investment through a variety of strategies which are implemented by the Mining Direction, of the Ministry of Mining and Energy, which is responsible for the development of the Colombian Mining Statistics Yearbook, an instrument for the promotion, communication and validation of the national mining industry sector performance for which this documents is presented with the support of different sources of information.

11 COLOMBIAN MINNING STATISTICAL YEARBOOK ïï 1. NATIONAL MACROECONOMIC NATIONAL INDEX 1.1. GDP Table. GDP PER SECTOR In constant Millions of COP for the year 2000 Source: DANE Figure. GDP PER SECTOR In constant Millions of Pesos for the year 2000 Source: DANE

12 ïî The behaviour of the internal GDP for the period between 2004 and 2008 presented an annual average variation of 5.5%. The increase of the production value was associated with the grow of some of the production items like construction (specially civil works), manufacturing industry which was responsible of pulling the growth together with the commercial trading, transportation and mining and quarry operation amongst others. The national GDP increased its price constant value since the year 2000, from 225 COP billion in 2004 to 280 COP billion in The annual variations showed a sustainable growth during the stated period, presenting in 2008 a decline of 1.9% in the manufacturing sector and a raise of 7.3% in the mining and quarry sector POPULATION Table. POPULATION In thousands of inhabitants Source: DANE. Calculation: UPME Figure. POPULATON In percentage of variation Fuente: DANE. Cálculos: UPME The growth rate of the Colombian population reflects a decrease in its total annual variation. In the period of 2004 to 2005 the rate presented a growth of 1.23% which dropped off to 1.19% for the period. During the 80 s the growth of the population was around 2%, the value of the indicator reduce according to the characteristics and changes in the population variables around 1.2% for the period of

13 COLOMBIAN MINNING STATISTICAL YEARBOOK ïí 1.3. GDP PER CAPITA Table. GDP PER CAPITA In constant Millions of COP for the year 2000 Source: DANE. Calculation: UPME. Figure. GDP PER CAPITA In constant Millions of COP for the year 2000 Source: DANE. Calculation: UPME The GDP per capita has increase in a substantial way during the period, from 5 COP millions annually to 6.2 COP millions annually for the period of This value is a reflection of the growth of the overall GDP in 5.5% average, with only a growth in the population of 1.2% in average for the stated period. The GDP of the departments in constant prices of 2000 shows that regions such as Bogotá, Antioquía, Santander, Cundinamarca, Meta, Valle, Casanare and San Andrés have the highest figures shown in the indicator based on the numbers provided by the DANE EXPORTS Table. Exports by sector In millions of dollars FOB Fuente: DANE

14 ïì Figure. Export by Sector In millions of dollars FOB Souce: DANE Both the international trade dynamic and the favorable international prices were key factors in the good behaviour shown by our country exports. The value of the exports generated by Colombia for the period is million dollars. The annual variations indicate an increase for the stated period with an average of 23.5% showing the biggest increase during the years 2004 and 2005 for which the industrial and mining sector weighted more in the indicator. The overall exports showed a surplus due to the favorable exchange rate (favorable international prices for our basic products) and the strong demand of our commercial partners like the United States and Venezuela. The traditional exports grew in the period in 27.6% average, those were mainly composed of petroleum and its derivates, coal and ferronickel that were favored by historically high international prices and also coffee. The non-traditional exports showed also high figures with a grow average of 20% made up by the agricultural /livestock sector, industrial sector (apparel, food, beverages and chemical industry among others and within the mining sector also in the non monetary gold and emeralds items.

15 COLOMBIAN MINNING STATISTICAL YEARBOOK ïë 1.5. IMPORTS Table. Imports by type of goods Figures in millions of dollars CIF Source: DIAN and Banco de la República. (1) Figures include petroleum derivates and coal. Figure. Export by Types of Goods Figures in millions of dollars CIF Source: DIAN and Banco de la República. The dynamics of the imports was determined by the lofty investment and the immense infrastructure projects developed in the country. The durable consumption goods increased in average during the year 2008 in a 4.8% while the non-durable increased in 20.8%. Both the intermediate and the raw materials increased compared with The imports of fuel and lubricants, agricultural raw materials and the industrial sector increased approximately in 25% compared with 2007, from 14.1 to 17.7 millions of dollars CIF. For the imports of capital goods the increase was of compared with 2007, presenting a figure for the item of 14.3 million dollars CIF for 2008.

16 ïê 1.6. TRADE BALANCE Table. Trade Balance In Millions of Dollars FOB Source: DIAN Calculation: DANE Figure. Trade balance In Millions of Dollars FOB Source: DIAN Calculation: DANE With and export of goods valued in million dollars and an import value for million dollars the result of the trade balance for the year 2008 was an estimate surplus of 470 million dollars, reflecting that the payment balance improved compared with previous years where it presented a deficit of 824 and 124 million dollars FOB. This reflects an augment in the export sector which compensated for the imports and determined a positive trade flow for the year Also the trade balance by economic groups presented a surplus for 2008 with the Asociación Latinoamericana de Integración, la Comunidad Andina and the G-3. The groups that presented a deficit were the European Union and the MERCOSUR The trade balance with our trade partners presented a surplus for 2008 with the United States of million dollars and with Venezuela of million dollars FOB. With other partners like Peru, Chile and Ecuador the balance was positive for While with countries such as Mexico, Brazil and China the trade balance presented a deficit.

17 COLOMBIAN MINNING STATISTICAL YEARBOOK ïé 1.7. FOREIGN DIRECT INVESTMENT Table. Foreign Direct Investment by Sector In millions of dollars Source: Banco de la República Figure. Foreign Direct Investment by Sector In millions of dollars Source: Banco de la República The Foreign Direct Investment was million dollars for 2008 with an estimated increase of million dollars compared with 2007, growing in 16.7%. The main focus of the investment was the petroleum sector with 34% and the mining and quarry sector

18 ïè with a 20%. In 2008 the F.D.I in petroleum and mining and quarry ascended to million dollars which was the 53.8% of the foreign direct investment in the country NATIONAL INVESTMENT Table. National Direct Investment by Sector In Millions of Dollars Source: Banco de la República Figure. Colombian Direct Investment by Sector In millions of dollars Source: Banco de la República

19 COLOMBIAN MINNING STATISTICAL YEARBOOK ïç The Colombian Direct Investment was million dollars in 2008 with an estimate increased of million dollars compared with 2007, a raise of 136%. The main destination of this investment was related with the mining and quarry sector INFLATION Table. Annual Inflation Variation In percentage Source: Banco de la República, annual variation, calculation UPME Graphic. Annual Inflation Variation In Percentage Source: Banco de la República, annual variation, calculation UPME The consumer annual inflation in the year 2008 ended in 7.6% which was affected by transitory demand shocks, as was the case of the food sector. In our country around 74% of the inflation acceleration in 2007 was associated with the CPI of the food sector. The raise in the food prices obeyed in first place to the high international prices of products like oils, cereals and sugar which are an essential part of the consumer basket. This phenomenon increased in the international prices of fuel, the raise of some emergent economies such as China and India and even the global warming helped in the increase of the indicator. In second place some transitory environmental phenomena and in third place the increase of both the internal demand and the internal offer.

20 îð MARKET EXCHANGE RATE Table. Market Exchange Rate In COP Source: Banco de la República, calculation UPME Figure. Market Exchange Rate In COP Source: Banco de la República, calculation UPME 2008 suffered from high revaluation pressures which were a result of the massive capital entry as a FDI mainly focus in the petroleum and mining sector. The exchange rate since 2007 has presented a revaluation dynamic which in a large part can be explain by the entry of capitals from the sale of state companies, the FDI and other external capital flows related with the investments in portfolios EMPLOYMENT AND UNEMPLOYMENT RATE Table. Simple Average Employment and Unemployment Rate In Percentage Source: DANE, calculation UPME

21 COLOMBIAN MINNING STATISTICAL YEARBOOK îï Figure. Simple Average Employment and Unemployment Rate Period In Percentage Source: Banco de la República, calculation UPME FISCAL DEFICIT AS A % OF GDP Table. Fiscal Deficit In Percentage Sources: Banco de la República, calculation UPME

22 îî Figure. Fiscal Deficit In Percentage Source: Banco de la República, calculation UPME For 2008 the fiscal deficit goal for the overall public sector was established in 1.4% of the GDP. This goal assumes a deficit of 3.3% of the GDP for the finances of the Central Government that will be partially adjusted by the 1.7% of the GDP surplus of the de-centralized sector. The expenses of a financial re-structuring are estimated in 0.3% of the GDP and the numbers of the Banco de la Republica and Fogafin will show a surplus of 0.4% and 0.1% of the GDP respectively. As a result an augment of the public deficit is expected based on both cyclical and non-cyclical factors such as an ascending cycle of the pension payment, the collection of the capital taxes and the liquidation of the ISS amongst others EXTERNAL DEBT Table. Internal and External Debt Figure in Thousand of Millions COP Source: Banco de la República, calculation UPME

23 COLOMBIAN MINNING STATISTICAL YEARBOOK îí Figure. INTERNAL AND EXTERNAL DEBT Deuda Interna y Externa In Thousand of Millions COP Source: Banco de la República, calculation UPME The structure of the Colombian debt is: The DNFPS is compound of: Security De-centralized entities) The DFPS is compound of: COLDEX, FEN, FINDETER, FOGAFIN) - For the year 1995 the external debt represented a 12.5% of the GDP and the internal debt was 10.3%. Since 1997 the compounding of the debt has change, the internal debt has gained more weight in the overall national debt compounding. The national debt was $ thousand of millions COP in The value of the medium term debt balance and the long term balance was $ thousand million COP and the balance of the external medium term and long term debts was $ thousand of millions COP which is the 65.8% and the 34.2% of the total national debt balance of the central government for 2008.

24 îì INTERNATIONAL RESERVES Table. International Reserves In Millions of Dollars Source: Banco de la República, calculation UPME Figure. International Reserves In Millions of Dollars Source: Banco de la República, calculation UPME The net balance of the international reserves for 2008 was US$ million considering that from the 1st of October, liabilities as the short term interest over special rights and liabilities for administration and custody of external funds were included in the calculation. As a result the balance of the international reserves is reduced compared with the gross balance and its adjusted to the established methodology of the IMF. The Banco de la República is the one designated to manage the performance and structure the reserves, with a clear criteria focus on the security management, the performance and the liquidity. In accordance to this criteria the reserves are invested in financial assets with high liquidity and low risk, which are also characterized by a large secondary market.

25 COLOMBIAN MINNING STATISTICAL YEARBOOK îë ROYALTIES Table. Royalties Paid by Entity In Millions COP Source: DNP. ANH. Hydrocarbon Royalties, INGEOMINAS: Mineral Royalties (includes salt 2007 y 2008). IFI: Royalties Figure. Royalties Paid by Entity In Millions COP Source: DNP. ANH. Hydrocarbon Royalties, INGEOMINAS: Mineral Royalties (includes salt 2007 y 2008). IFI: Royalties The royalties paid to the departments and municipalities where the natural resources are located and exploited including non-renewable sources like hydrocarbons, are estimated in 19.4 billion COP during the period of , when considering only mining (coal, precious metals, emeralds, nickel, iron, manganese, slat and limestone) the estimated is 3,6 billion COP, which is the 18.9% of the total royalties.

26 îê 2. AMERICA MINING OUTLOOK 2.1. TOTAL GDP Table. GDP BY COUNTRY In Constant Million Dollars for the Year 2000 Source: ECLAC. (t)temporary Figure. TOTAL GDP BY COUNTRY In constant Million of Dollars for the Year 2000 Source: ECLAC

27 2.2. MINING GDP Table. MINING GDP BY COUNTRY In Constant Millions of Dollars for the Year 2000 COLOMBIAN MINNING STATISTICAL YEARBOOK îé Source: Research for the Mining and Energy Ministry in accordance to the estimates of the ECLAC (e) estimate. Figure. MINING GDP BY COUNTRY In Constant of Millions of Dollars for the Year 2000 Source: Research for the Mining and Energy Ministry in accordance to the estimates of the ECLAC 2.3. MINING PRODUCTION BY MINERAL Coal Table. Coal Production by Country In Thousands of Tons Source: BP Statistic Review, ECLAC

28 îè Table. Gold Production In Kilograms Source: BP Statistic Review, ECLAC Gold Table. Gold Production In Kilograms Source: ECLAC (e) estimate Figure. Gold Production In Kilograms Source: ECLAC

29 COLOMBIAN MINNING STATISTICAL YEARBOOK îç Silver Table. Silver Production In Tons Source: USGS. Figure. Silver Production In Tons Source: USGS Nickel Table. Nickel Production In Tons Source: USGS. Colombia INGEOMINAS

30 íð Figure. Nickel Production In Tons Source: USGS. Colombia INGEOMINAS Copper Table. Copper Production In Thousands of Tons Source: ECLAC

31 Figure. Copper Production In Thousands of Tons COLOMBIAN MINNING STATISTICAL YEARBOOK íï Source: ECLAC Steel Table. Steel Production In Thousands of Tons Source: ECLAC. Data for 2008 is not available Figure. Production In Thousands of Tons Source: ECLAC

32 íî Bauxite Table. Bauxite Production In Thousands of Tons Source: ECLAC. Data for 2008 is not available Figure. Bauxite Production In Thousands of Tons Source: ECLAC Zinc Table. Zinc Production In Thousands of Tons Source: ECLAC. NA: Not Available

33 COLOMBIAN MINNING STATISTICAL YEARBOOK íí Figure. Zinc Production In Thousands of Tons Source: ECLAC Iron Table. Iron Production In Thousands of Tons Source: ECLAC. Data for 2008 is not available Figure. Iron Production In Thousands of Tons Fuente: CEPAL

34 íì Tin Table. Tin Production In Thousands of Tons Source: ECLAC. Data for 2008 is not available. Figure. Tin Production In Thousands of Tons Source: ECLAC 2.4. FOREIGN INVESTMENT IN MINING Table. Foreign Direct Investment in Mining In Millions of Dollars Source: ECLAC, * Balance of the foreign direct investment and the exterior investment

35 COLOMBIAN MINNING STATISTICAL YEARBOOK íë Figure. Foreign Direct Investment in Mining In Millions of Dollars Source: ECLAC, * Balance of the foreign direct investment and the exterior investment 2.5. MINERAL PRICES Table. International Mineral Prices In Dollars Source: London Fix, London Metal Exchange, DIAN-DANE Figure. International Prices of Gold In Dollar / Oz Troy Figure. International Prices of Silver In Dollars / Oz Troy Source: LF Source: LF

36 íê Figure. International Prices of Platinum In Dollars / Oz Troy Figure. International Prices of Tin In Dollars / Tons Source: LF Figure. International Prices of Lead In Dollars / Tons Source: LME Figure. International Prices of Aluminum In Dollars / Tons Source: LME Figure. International Prices of Copper In Dollars / Ton Source: LME Figure. International Prices of Zinc In Dollars / Ton Source: LME Source: LME

37 COLOMBIAN MINNING STATISTICAL YEARBOOK íé Figure. International Prices of Nickel In Dollars / Ton Figure. International Prices of In Dollars / Ton Source: LF Figure. International Prices of Soft Coal In Dollars / Ton Source: DIAN-DANE Figure. International Prices Other Soft Coals In Dollars / Ton Source:DIAN-DANE Source: DIAN-DANE Figure. International Prices of Coke and Semi-Coke In Dollars / Ton Source:DIAN-DANE

38 íè 3. COLOMBIAN MINING 3.1. MINING MACROECONOMIC INDICATORS Mining GDP Table. Mining GDP In Constant Millions COP of 2000 Source: DANE Table. Mining GDP by Minerals In Constant Millions COP of 2000 Source: DANE

39 COLOMBIAN MINNING STATISTICAL YEARBOOK íç Figure. Mining GDP In Constant Millions COP of 2000 Source: DANE In the year 2008 the Colombian GDP increased its annual value in constant prices for 2000 (DANE update) in 2.53%. The increased of the GDP was represented mainly by the mining and quarry activities which presented an annual variation of 7.3% valued in million COP at the end of For the Mining and Quarry sector the participation in the total GDP was 4.77% (including hydrocarbons) and specifically for the Mining sector the participation in the total GDP was 1.51% for the year 2008 in accordance with the valuation methodology establish by the DANE for the GDP. For the year 2008 the mining GDP presented an increase of 1.33% compared with the year 2007, mainly explained by the raise in the value of the GDP of the mineral coal, which for the year 2008 was 4.81% compared with The relation is explained by the 5.15% increase of the annual coal production which augmented from 69.9 million tones to a production of 73.5 million tons Mining Exports Figure. Mining Exports In Millions of Dollars FOB Source: Dian- DANE, Calculation UPME

40 ìð Figure. Exports by Mineral In Millions of Dollars FOB Source: Dian- DANE, Calculation UPME In 2008 the mining exports represented a 19.79% of the total value of the exports which was million dollars FOB. The value of the traditional exports was million dollars which was the 15.7% percent of the total export value. The mining and ferronickel exports (traditional) are 25.2% and 4.32% respectively of the total value of the traditional exports for Coal and Ferronickel have represented an average percentage in the total export value of 16.6% and 5.2% each one from 2005 to The mining exports (both traditional and non-traditional) total million dollars FOB which represented a 19.8% of the total exports for Foreign Direct Investment in Mining (total and by mineral) Figure. Foreign Direct Investment In Millions of Dollars Source: Banco de la República

41 COLOMBIAN MINNING STATISTICAL YEARBOOK ìï Figure. Foreign Direct Investment In Millions of Dollars Source: Banco de la República During 2008 both capital and financial accounts showed important entries of long term investment, estimated in US$ million mainly from Foreign Direct Investment, which reflects the trust of the foreign investors in the country macro-economical policies. The amount invested in coal for 2008 was US$ million and for the amount invested for extraction of metallic minerals was US$121.7 million. The Mining sector showed a reinvestment of profits and other activities valued in US$ million. When analyzing the breakdown of F.D.I the mining sector channeled the second largest investment which reflected the importance of the mining polices directed towards the promotion, exploration and exploitation GEOLOGIC INFORMATION Exploration Table. Geologic Knowledge In Square Kilometers Source: INGEOMINAS

42 ìî Table. Geochemical Knowledge In Square Kilometers Source: INGEOMINAS Table. Geophysical Knowledge In Square Kilometers Source: INGEOMINAS Investment in Exploration Table. Investment In COP Source: INGEOMINAS

43 COLOMBIAN MINNING STATISTICAL YEARBOOK ìí 3.3. MINING MANAGEMENT Mining Applications Figure. Grant Applications by Department In Number of Applications Source: INGEOMINAS

44 ìì Figure. Grant Applications by Mineral In Number of Applications Source: INGEOMINAS Mining Titles Table. Mining Titles by Department In Number of Titles Continue...

45 COLOMBIAN MINNING STATISTICAL YEARBOOK ìë Source: INGEOMINAS Source: INGEOMINAS

46 ìê Table. Mining Titles by Mineral In Number of Titles Source: INGEOMINAS Table. Mining Titles by Contract Type In Number of Titles Source: INGEOMINAS Contracted Area Table. Contracted Area by Department In Acres Continue...

47 COLOMBIAN MINNING STATISTICAL YEARBOOK ìé Source: INGEOMINAS

48 ìè Table. Contracted Area by Mineral In Acres Source: INGEOMINAS Main Projects Table. Main Mining Projects Continue...

49 COLOMBIAN MINNING STATISTICAL YEARBOOK ìç Source: INGEOMINAS Continue...

50 ëð Special Reserve Areas Figure. Special Reserve Area Borders Continue...

51 COLOMBIAN MINNING STATISTICAL YEARBOOK ëï Continue...

52 ëî Source: Ministery of Mining and Energy Indigenous People Mining Zones Table: Indigenous People Special Mining Zones Borders Source: Ministry of Mining and Energy

53 COLOMBIAN MINNING STATISTICAL YEARBOOK ëí Afro-Colombian Communities Mining Zones Figure. Afro-Colombian Communities Mining Zone Borders Source: Ministry of Mining and Energy

54 ëì Control Visits Table. Control Visits In Number of Control Mining Titles Source: Ministry of Mining and Energy Figure. Control Visits In Number of Control Mining Titles Source: Ministry of Mining and Energy

55 COLOMBIAN MINNING STATISTICAL YEARBOOK ëë Explosive Consumption Figure. Consumption by Type of Explosive Source: INDUMIL

56 ëê Mining Districts Table. Mining Districts Continue...

57 COLOMBIAN MINNING STATISTICAL YEARBOOK ëé Source: Ministry of Mining and Energy Table. Mining Districts in Numbers Source: Ministry of Mining and Energy

58 ëè 3.4. MINING PRODUCTION Table. Mineral Production Note: The Coal and Cement Limestone sets were updated based on the last quarter report of 2007 produced by Ingeominas and the ICPC respectively. Source: 1. Ingeominas. 2. IFI Concession Salinas 3. Emicauca 4. ICPC 5. Miner S.A. 6. Acerías Paz del Río, Ingeominas. By banrep and Paz del Rio the production was estimated in in With relation with the bulletin the set is corrected, based on the data given by Cerromatoso. ** Is the result for multiplying the clinker production reported by the ICPC and a 1,56 factor. *** Is the factor of conversion from pounds to tons 1 lbs = grams. The set changed based of the reports by Cerromatoso S.A. **** Corresponds solely to the data on emeralds exports Coal Production Table. Coal Production by Department In Millions of Tons Source: INGEOMINAS

59 COLOMBIAN MINNING STATISTICAL YEARBOOK ëç Gold Production Table. Gold Production by Department Source: INGEOMINAS Silver Production Table. Silver Production by Department In Kilograms Source: INGEOMINAS

60 êð Platinum Production Table. Platinum Production by Department In Grams Source: INGEOMINAS 3.5. MINING CONTRIBUTION Royalties Table. Royalties by Mineral In COP Source: INGEOMINAS. It does not include the royalties collected on salt by the IFI in

61 COLOMBIAN MINNING STATISTICAL YEARBOOK êï Figure. Royalties by Mineral In COP Fuente: INGEOMINAS. Table. Coal Royalties Distributed by Department and Other Entities In COP Source: INGEOMINAS

62 êî Table. Nickel Royalties Distributed By Department and Other Entities In COP Source: INGEOMINAS Table. Precious Metals Royalties Distributed by Department and other Entities In COP Continue...

63 COLOMBIAN MINNING STATISTICAL YEARBOOK êí Source: INGEOMINAS Table. Emerald Royalties Distributed by Department and other Entities In COP Source: INGEOMINAS Table. Iron Royalties Distributed by Department and other Entities In COP Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, that establish the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts, fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal Town Halls in which the exploitation is done, reason for which the information related is partial.

64 êì Table. Limestone Royalties by Department and other Entities In COP Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, that establish the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts, fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal Town Halls in which the exploitation is done, reason for which the information related is partial. Table. Manganese Royalties Distributed by Department and other Entities In COP Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in the Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, which establish that the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal Town Halls in which the exploitation is done, reason for which the information related is partial.

65 COLOMBIAN MINNING STATISTICAL YEARBOOK êë Table. Plaster Royalties Distributed by Department and other Entities In COP Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in the Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, which establish that the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal Town Halls in which the exploitation is done, reason for which the information related is partial. Table. Salt Royalties Distributed by Department and other Entities In COP Source: INGEOMINAS. This is preliminary information the Financial Statements of INGEOMINAS had not been reconciled. The information is based on the data that INGEOMINAS is using.

66 êê Mining Fund Projects (MFP) Table. Mining Fund Projects Continue...

67 COLOMBIAN MINNING STATISTICAL YEARBOOK êé

68 êè Source: INGEOMINAS Employment Generation Table. Population in Mining Thousands of Habitants Source: DANE. * Information for the first quarter 2008

69 COLOMBIAN MINNING STATISTICAL YEARBOOK êç Base Price for Royalty Liquidation Source: UPME. 1. The Law 756 establishes a 1% for construction materials and a 3% for non-metallic mineral. The liquidation base for the royalties for precious and non-precious metals exported in polymetallic concentrates will be the base price for each metal in the external market given by the London Exchange (LME). The royalties for emeralds will be the ones establish in the Resolution 8 of the 1938 August 23 of 1995 and of September 20 of For the active contract of Cerromatoso a 4% will apply for royalties and another 4% for compensations. For the future contract or extension a 7% will apply for royalties and a 5% for compensations, in accordance with Article 4. For new grants or extension of the active contract, the base price will be fixed in the mine border of entrance and it will be used for the liquidation of the royalties and for cash compensation the base price will be fixed by weighted average of the price (FOB) in the ports. The value for the gram of gold, silver and platinum in the mine entrance used for the royalties liquidation, will be the eighty percent (80%) of the last month international average price, which is publish in the London Metal Exchange (LME) in its Past the Meridian version.

70 éð 3.6. SECURITY IN MINING Information on Security and Hygiene Table. Information on Security and Hygiene In Quantities Source: INGEOMINAS Information on Mining Emergencies Table. Information on Mining Emergencies In Quantities Source: INGEOMINAS Investments in Security and Hygiene Table. Investment in Security and Hygiene In COP Source: INGEOMINAS

71 COLOMBIAN MINNING STATISTICAL YEARBOOK éï 3.7. TRANSPORTATION INFRASTUCTURE Railroad Figure. Railroad Infrastructure Map Source: INCO Ports Figure. Ports Infrastructure Maps Source: Ministry of Transportation

72 éî Roads Figure. Road Infrastructure Maps Source: Ministry of Transportation

73 COLOMBIAN MINNING STATISTICAL YEARBOOK éí 4. COLOMBIAN MINING IN 2009 (I SEMESTER OF 2009) 4.1. MINING GDP AND MINING PRODUCTION BEHAVIOUR The Colombian economy until the second quarter of 2009 showed a reduction in the GDP value in constant prices of 2000 (DANE update) of 0.5% compared with the II quarter of In the GDP activity breakdown items as manufacturing, agriculture, trade and transportation showed negative annual variations of 8.9%, 1.2%, 3.3% and 1.1% respectively The mining and quarry sector showed a participation in the GDP of 5.2% (including hydrocarbons) and more specifically the mining sector showed a participation of 1.6% in the second quarter of 2009 valued with the new methodology establish by the DANE for the GDP valuation. The coal semester variation in the GDP was of -0.7% for the II quarter of 2009, the reason was a reduction in the production of the semester of 0.6% from 36.5 million tons to 36.3 million tons. The mining GDP for the first quarter of 2009 showed an increase when compared with the first quarter of 2008 that was valued in million COP. Figure. GDP by Mineral In million of COP in constant prices for 2000 Source DANE, calculation UPME The semester for coal, metallic minerals and non-metallic mineral GDP showed the following variations -0,8%, 24,2% and 1,4% respectively and related with the first semester of 2008

74 éì The growth of the GDP value for metallic minerals is related with the gold production, which showed a semester variation of 58%. Compared with the same period of 2008 the production went from 13.4 tons in the first semester of 2008 to 21 tons for the first semester of Table. Mineral Production Source: INGEOMINAS Another factor which improved the mineral GDP value of the metallic minerals was the increase of the nickel production, which presented a growth of approximately of 44% when compared with the first semester 2008 production. This annual variation in the production represented additional tons compared with the first semester of FOREIGN DIRECT INVESTMENT ANALYSIS Based on the information of the first semester of 2009 the final capital and financial accounts presented mayor long term entries, valued in US$ million from Foreign Direct Investment in Colombia, which is a support and a vote of trust from the foreign investors on the macroeconomic stability of the country. However the foreign direct investment in the country for the I semester of 2009 presented an annual reduction of 9.6% which represents a reduction of US$ 521 million compared with the first semester of The foreign direct investment had a value of US $ million which has followed the following trend: Figure. Foreign Direct Investment In Millions of Dollars Source Banco de la República. Calculation UPME

75 COLOMBIAN MINNING STATISTICAL YEARBOOK éë The F.D.I in mining and quarries presented a higher value than those made in petroleum estimated in US4 192 million with a total participation in the investment of 35% which showed an annual increase of 56.9% compared with the first semester of As stated the Foreign Direct Investment in Mining as a participation of 35% represented in US$ million of the overall investment which amounts to US$ million for the first semester of In the F.D.I breakdown the mining sector took the first place of capital attraction that demonstrates the importance of the mining sector in the promotion of search and exploitation projects. In the following figure we highlight the participation of the principal economic items to which the F.D.I was directed in the first semester of Figure. Foreign Direct Investment by Sector Source: Banco de la República. Calculation UPME 4.3. BEHAVIOUR OF THE MINING ROYALTIES The royalties distributed to the departments and municipalities in which the non renewable natural resources are exploited like, coal, precious metals, emeralds, nickel, iron and manganese and lime stones among other, is estimated around million COP in September of 2009 Approximately 87% of the resources that are distributed are generated by coal, 6.3% from nickel, 5.5% by other precious metals, 0.2% by emeralds and 1% by other minerals considered in the period. Figure. Participation in the Royalties By Mineral Source Ingeominas, Calculation UPME

76 éê Table. Distribution of Royalties by Mineral Source INGEOMINAS, Calculation: UPME 4.4. PRICES OF THE MINERALS Figure. Prices of the Minerals Source: UPME. * I quarter of 2009