Exploring Mining Opportunities?

Transcription

1 Exploring Mining Opportunities? The answer is Colombia María Constanza García President Melbourne - May 31, 2013

2 Colombia is on the radar of mining investors

3 USD Million USD$1 out of USD$6 of FDI is made in mining , Improving security. Knowledge of the mineral potential Source: Central Bank of Colombia.

4 Source: (Graph 1) Corporate Exploration Strategies 2012, Economic Metals Group- MEG. (Graph 2) Survey of mining companies 2011/2012 (25 countries) by the Behre Dolbear Group. Colombia is emerging as an exploration hotspot Top destinations for exploration investment 25% of the global exploration budget Countries that attract investment in the mining sector

5 Company Subsidiary in Colombia Mineral Country of origin Top foreign mining companies with investments in Colombia BHP Billiton Anglo American Xstrata/Glencore Barrick Gold Anglo Gold Ashanti Drummond EBX Xstrata/Glencore Votorantium Group B2 Gold Gran Colombia Gold Holcim CEMEX CerrejónCerromatoso Cerrejón Cerrejón Sorotama Anglo Gold Ashanti Drummond AUX Prodeco Paz del Rio Gramalote Gran ColombiaGold Holcim CEMEX Coal - Ferronickel Coal Coal Gold Gold Coal Coal - Gold Coal Steel - Coal Gold Gold Building materials Building materials Australia South Africa Switzerland Canada South Africa United States Brazil Switzerland Brazil Canada Canada Switzerland Mexico Source: National Mining Agency

6 Colombia has the potential to significantly expand its mining industry

7 Privileged position in geotectonic and metallogenic circumstances The Andean System: Shaped by 3 mountains ranges Similar situation to the Chilean, Peruvian and Mexican Andes (Sistema de la Sierra Madre) The Guiana System: Eastwards of the Guiana Shield (Escudo Guyanés) located in the Colombian border with Venezuela and Brazil Source:

8 Significant mineral resources found in Colombia Mineral World ranking Latin America Emeralds 1 1 Platinum 5 1 Thermal Coal 9 1 Nickel 9 2 Gold 19 6 Copper 48 6 World No. 1 producer of emeralds. In Latin America: No. 1 producer of coal and platinum No. 2 producer of Nickel No. 6 producer of gold and copper Source: Nickel (2012): US Geological (Survey 2013), Coal (2012): World Coal Association, Gold (2011): Reuters.

9 M Ton COAL Production GUAJIRA 39% Coal Production CESAR 52% N. SANTANDER 3% CUNDINAMARCA 2% BOYACA 3% Source: National Bureau of Statistics - DANE. Mining and Energy Planning Unit-UPME. Ministry of Mines and Energy.

10 COAL Main Projects Cerrejón BHP Billiton, Xstrata Coal, and Anglo American Drummond Itochu CI Prodeco Glencore Colombian Natural Resources Goldman Sachs Paz del Río Votorantim New Age Exploration Ascot Resources Ltd Open cut 90% Underground mining 10% Thermal 95% Metallurgical 5% Source: Colombian Geological Service - CGS

11 COAL Colombia has the largest coal reserves in Latin America La Guajira Reserves 4,298 4,298 Thermal Thermal Córdoba Reserves 719 Thermal Antioquia Antiguo Caldas Reserves 471 Thermal Cesar Reserves 6,291 Thermal Norte de Santander Reserves 780 Thermal, Metallurgical Santander Reserves Thermal, Metallurgical Valle del Cauca - Cauca Reserves Thermal, Metallurgical Thermal, Metallurgical Cundinamarca Reserves 1,467 Thermal, Metallurgical Boyacá Reserves 1,703 Thermal, Metallurgical Source: Mining and Energy Planning Unit-UPME

12 Tons % annual growth GOLD Production BOLÍVAR 6% 70 Gold Production % % 80% 40% 0% -40% -80% CHOCÓ 37% CAUCA 5% NARIÑO 4% ANTIOQUIA 41% TOLIMA 1% Source: Mining and Energy Planning Unit-UPME. Mainly alluvial extraction

13 GOLD Main Projects PROJECTS IN EXPLOITATION STAGE Buriticá (Continental Gold) San Ramón (Red Eagle Mining) Quinchia (Batero Gold) Miraflores (Seafield Resources) Angostura (Eco Oro Minerals) Marmato (Gran Colombia Gold) Gramalote (AngloGold Ashanti/B2Gold) Cerro Vetas (Sunward Resources) California (Auramex Resource Corp) Bagre (Mineros S.A.) PROJECTS IN EXPLORATION STAGE La Bodega (AUX) Segovia Operations (Gran Colombia Gold) La Mina (Bellhaven Copper & Gold) California (Galway Resources) Santa Rosa (Red Eagle Mining) La Colosa (AngloGold Ashanti) Source: Colombia Gold Report/The Gold Letter-Paul Harris

14 GOLD Large increase in discoveries and production NI Au oz Discovered Source: Colombia Gold Report/The Gold Letter-Paul Harris

15 Tons % annual growth COPPER Production CHOCO 100% Copper Production * 60% 40% 20% 00% -20% -40% -60% -80% * Data from Sep Source: Mining and Energy Planning Unit-UPME.

16 COPPER Main Projects Comita (Rugby Mining Limited) Choco Santa Helena (CuOro Resources) Antioquia El Roble (Atico Mining Corp.) Choco MoU with Codelco Ramos Laverde (Salazar Resources) Nariño Mocoa (B2Gold) Putumayo

17 Thousand tons % annual growth NICKEL Production Nickel Production 52,0 60% 40% CÓRDOBA 100% % 0% 10-20% % Source: Mining and Energy Planning Unit-UPME.

18 Kg % Annual growth PLATINUM Production Platinum Production Source: Mining and Energy Planning Unit-UPME. 120% 100% 80% 60% 40% 20% 00% -20% -40% CHOCO 99% Condoto Platinum

19 Colombia is the most underexplored country in the Andean region for minerals

20 An unexplored country Pure Mineral Potential 0,75 0,72 0,71 0,65 0,65 0,55 0,54 0,49 0,47 0,46 0,44 0,44 0,42 0,37 0,29 5% of Colombian territory is currently mined. Approximately 80% of the territory is unexplored. Source: Fraser Institute Survey

21 Country with up and coming opportunities Existing mining titles % in exploration, 25% in assembly and construction, 39% in operation (exploitation) Entitlement area by mineral % 5% 2% 2% Precious metals Coal Entitlement area of 5.2M Ha. 9% 52% Building materials Other Limestone 25% Clay Emeralds 21

22 Legal Framework of Mining Concessions

23 Mineral Tenure Systems Staking (first come first served) Public Bidding Process Any mineral Any area not claimed for mining Any individual or company General requirements 11 Strategic minerals Strategic Mining Areas Company with specific capacity and experience Technical, economic and socialenvironment requirements Companies can be constituted up to 100% with foreign capital. Foreign investors are considered equal to domestic investors. Colombian government charges surface fees, mineral royalties and taxes.

24 Staking: Procedure Application Buy Pin Code (Rights to apply online) Apply online 3 Days to present required documents Technical and legal evaluation The authority may request supporting documentation Decision Inscription in the National Mining Registry Refusal Re-open applications system - July, 2013

25 Public Bidding Process: Strategic Mining Areas (SMA) LA GUAJIRA Gold Cooper Iron Platinum Coal (Thermal and Metallurigical) Columbite Tantalite Potassium Magnesium Phosphate Uranium - ATLANTICO MAGDALENA CESAR SUCRE BOLIVAR CORDOBA NORTE DE SANTANDER SANTANDER ANTIOQUIA ARAUCA CHOCO BOYACA CASANARE CALDAS CUNDINAMARCA RISARALDA VICHADA QUINDIO SANTA FE DE BOGOTA D. C. TOLIMA VALLE DEL CAUCA META GUAINIA HUILA CAUCA GUAVIARE TOTAL SMA 20.5 M Ha. (18% of Colombia s territory) NARIÑO CAQUETA VAUPES PUTUMAYO AMAZONAS

26 Public Bidding Process: Phases Geoscientific data compilation. Structure the process. Launching the Process 1st Competitive Process

27 Concession Contract Prior Consultation process *National Mining Registry

28 Colombia is a golden opportunity. Let us assist you at the NMA Thanks