Mining Sector May 2009
Contribution of Mining Sector to Colombian economy 2006 2007 2008* Total GDP Growth Mines and hydrocarbons GDP Growth Mining share as % of total GDP 6,8% 0,1% 2,58% 7,5% 4,6% 2,6% 2,5% 10,1% 2,5% Mining exports (Million US$) Mining exports as % of total exports US$ 5,208 21,3% US$ 6,346 21,1% US$ 5,778 20% Mining Foreign direct investment (Million US$) US$ 1,783 US$ 1,047 US$1,657 Mining Royalties (Million US$) US$ 369 US$ 469 US$ 645** * Oficial inforrmation a 3Q -2008. % Growth ** 2008
Colombian Mining Facts Colombia, a Mineral big player, number 8 in coal production, 21st position in Gold With a great potential for new projects, important Coal Reserves Ton 17 billion and Ton 7 billion measured Coal current production: only 73.5 M Ton, less than 1% of the measured reserves Colombia is exporting over US$ 6 Billion in Minerals with a 23% CAGR 2007/2000 In 2007 FDI in mining sector was over four times greater than in 2001 With a 30% expected growth production, current projects are enjoying the Colombian potential Established openness, and understanding process, contractual terms are well defined Some companies that are delighting this opportunity Main Exploration Projects New infrastructure projects to support the operations
Colombia, a Mineral big player Number 8 in coal production, 21st position in Gold Kilograms (.000) Gold Production Coal Production 300 250 200 150 100 50 0 South Africa China Australia United States Peru Russia Indonesia Uzbekistan Ghana Papua New Guinea Mali Argentina Chile Brazil Tanzania Philippines Mexico Mongolia Guinea Colombia 15.4 Country China United States India Australia South Africa Russia Indonesia Poland Kazakhstan Colombia MMTn (2007) 2.549 Mt 981 Mt 452 Mt 323 Mt 244 Mt 241 Mt 231 Mt 90 Mt 83 Mt 72Mt 73,5 Mt in2008 Source: World Coal Institute, British Geological Survey
With a great potential for new projects Important Coal Reserves Ton 17 billion and Ton 7 billion measured
Coal current production: only 73,5 M Ton, less than 1% of the measured reserves. Cerromatoso Cerrejón Drummond Glencore Norte de Santander Coal: 73,5 Mtons (2008, + 4,9%) Cerrejón (Companie): 31,9Mt (2007) Drummond: 21,3 Mt (2007) Glencore: 10 Mt (2007) Boyacá (Region)2.2 Mt (2007) Cundinamarca (Region) 2.4 Mt (2007) Norte de Santander (Region) 2 Mt (2007) Mineros Boyacá Cundinamarca Nickel: 41,6 Ktons. ( - 15,6%) Gold: 15482 kg. Sandstone for cement: 13,2 Mt. Emeralds: 2,1 Mkilates. Source: Asomineros- Upme
Colombia is exporting over US$ 6 Billion in Minerals with a 23% CAGR 2007/2000 8.000 6.000 USD MILLION 4.000 2.000 0 2000 2001 2002 2003 2004 2005 2006 2007 OTHER METALS 241 50 75 132 204 378 589 706 GOLD 91 55 94 585 561 517 281 332 EMERALDS 97 89 92 80 74 72 90 126 NICKEL 211 235 272 416 628 738 1.107 1.680 COAL 861 1.179 991 1.422 1.859 2.598 2.913 3.495 Source: UPME
In 2007 FDI in mining sector was over four times greater than in 2001 FOREIGN DIRECT INVESTMENT FLOWS IN THE MINING SECTOR (2001 - IIIQ 2008) (US$MILLION) 5000 4000 3000 2000 1000 0 4433 4442,5 3777,5 3281,8 3.102,6 1044,5 915,3 905,4 1741,3 2001 2002 2003(pr) 2004(p) 2005(p) 2006(p) 2007(p) 2007(p) III Q 2008 (p) III Q Source: Central Bank (Banco de la República)
With a 30% expected growth production Current projects are enjoying the Colombian potential Zone 2007 MT 2010MT Guajira (Cerrejón) 31.3 40 Thermal Coal Cesar (Dmd., G/core, Coalcorp) 32,9 57 Other Regions 6.6 5 Total Production (Pr) 71 102 2006 2007 2008 Million Million Million Pounds Pounds Pounds Nickel Cerromatoso Nickel 112.74 108.2 113.7 Source: Ministry of Mines and Energy
Some companies that are delighting this opportunity Company Anglogold Ashanti Ltd B2Gold Corp Glencore AG Greystar Resources Ltd. Colombia Goldfields Ltd. Mineros S.A. Barrick Gold Ltd. BHP Billiton Inc Cambridge Mineral Resources PLC Vale Votorantim Continental Gold Ltd. Ventana Gold Corp Mega Uranium Ltd. Caribean Copper and Gold Inc. Anglo American PLC Grupo de Bullet S.A. Rio Tinto PLC. Windy Knob Resources Ltd. Frontier Pacific Mining Corporation Galway Resources Ltd Principal Domicile South Africa Switzerland Colombia Australia UK Brazil Brazil USA UK USA UK Australia Aprox. U$ 155 000.000 Source: Ministry of Mines and Energy
Main Exploration Projects I / II Project: La Y Place: Antioquia (Zaragoza) Company: Mineros S.A. Mineral: Gold (underground) Proved Reserves: 300.000 oz Date Production: 02/09 Project: Marmato Place: Caldas Company: Colombia Golfields Mineral: Gold (vetillas) Inferred Reserves: 2.5 mill oz Drillings: 32.000 ml Project: Gramalote Place: Antioquia Company: B2Gold-AGA Mineral: Gold (vetillas) Inferred Reserves: 2.5 mill. Oz Drillings: 320.000 ml - 450 ml deep. Project: San Jorge Place: Córdoba Company: BHP Billiton Mineral: Coal Solicitude by Ingeominas Project: Río de Oro Place: Norte de Santander Companies: Geominas y others Mineral: Thermal Coal Inferred Reserves: 320 mill ton Measured Reserves: 60 mill ton Project: Quebradona Place: Antioquia Companie: AGA B2Gold Mineral: Gold (diseminado) Inferred Reserves: 1.5 a 2 mill oz Drillings: 6.000 ml to 300 ml. deep
Main Exploration Projects II / II Company: Anglo Gold Ashanti Project: Acandi Mineral: Gold porfido Place: Choco Inferred Reserves : > 10 mill oz Company: Anglo American Colombia Exploration. Mineral: sulfuros polimetálicos Solicitude by Ingeominas Project: Pantanos Place: Artioquia Company: Carbones de la Loma Mineral: sulfuros olimetálicos Solicitude by Ingeominas Project: Mocoa Place: Putumayo Company: B2Gold Mineral: cooper and molibdeno Drillings: 5000 ml Project: La Colosa Place: Tolima Project: Miraflores Place: Risaralda Company: B2Gold Mineral: Gold veta Inferred Reserves: 0.8 mill oz Project: Angustura Place: Santander Companies: Greystar Resources Mineral: Thermal Coal Inferred & Indicated Reserves: 7 mill oz Inferred Reserves: 6 mill oz Drillings: > 200.000 ml Project: Taraira Place: Vaupes Companie: Cosigo-Frontier Mining Corporation Mineral: Gold (y concentraciones) Solicitude by Ingeominas
New infrastructure projects to support the operations PORTS CIENAGA B/QUILLA RAILROAD PROJECTS Coal Corridor Magdalena- Caribe Corridor Altiplano Cundiboyacense Corridor Carare Corridor Pacific Corridor Medellin Envigado Chiriguana Gamarra Puerto wilches Carare Puerto Berrio Bolombolo Dorada Lenguazaque La Felisa Belencito Source: Transport Ministry Buenaventura Cartago Zazal Cali La Tebaida Espinal Villa vieja La Caro Bogotá Neiva
Established openness, and understanding process: Contractual terms are well defined
Related entities in Mining Industry Ministry of Mines & Energy, MME (www.minminas.gov.co) Colombian Institute of Geology and Mining, Ingeominas (www.ingeominas.gov.co) Planing Unit of Mining and Energy, UPME (www.upme.gov.co) Asomineros Chamber - ANDI (www.andi.com.co)