UNLOCKING COLOMBIA´S MINING POTENTIAL - ALABC · Minera El Roble (Copper concentrades). ... Colombia, Grupo de Bullet, Cosigo, ... PUERTO MULTIPROPOSITO BRISA S.A

Presented by: Arturo Quirós BoadaExecutive Director Cámara ASOMINEROS ANDI

Adelaide, Nov 2009

UNLOCKING COLOMBIA´S MINING POTENTIAL

AUSTMINE 2009

Location: North Corner of South America. Only SA Country with access to Atlantic & Pacific Oceans.

Surface Area: 1,141,748 Km2. 15% of Australia.

Population: 42 Million. (75% urban, 25% rural).Third Largest spanish-speaking population in America

Capital: Bogotá (7 Million inhabitants)

GDP* US$ 240 BillionFourth largest economy in South America.

GDP/Capita* US$ 4989

FDI (2008) US$ 10,200 million

Literacy Rate: 94.2%

System of Government: Presidential Republic. Balance of powers between executive, legislative & judicial branches.

Colombia Basic Figures

*: International Monetary Fund 2008.

Cámara de ASOMINEROS

Cámara ASOMINEROS

• ANDI is the National Business Association of Colombia. It was founded in september 11 of 1944. It has more than a 1,100 colombian private companies of different industrial sectors that produce goods and services.

• ASOMINEROS was founded in 1932 to represent the organized mining industry. It has 36 members.

• The ASOMINEROS Chamber as part of ANDI´s Organization was born in may 2003, as an alliance to encourage the growth of the mining sector in Colombia.

• Our main purpose is to promote and maintain an optimumbusiness environment, through participation with the publicsector, for the sustainable development of Colombia´s miningindustry.

Production Mining companies:Cerromatoso (BHP Billiton). (Open Pit Nickel Mine).

Cerrejón (BHP Billiton, Anglo American y Xstrata). (Open pit Coal Mine).

Drummond Colombia. (Drummond USA). (Open pit Coal Mine).

Prodeco (Xtrata). (Open pit Coal Mine).

Carboantioquia, Carbones del Caribe, Carbones del Cesar (Coal).

Carbones San Fernando, Mina La Margarita (Coal).

Mineros S.A., Mineros Nacionales (Gold).

Brinsa S.A. (Salt).

Minera El Roble (Copper concentrades).

Cementos Argos, Cemex Colombia (Cement).

Sumicol, Agregados del Norte, Calina, Ladrillera San Cristóbal,

Prominerales, Triturados El Chocho (Construction materials).

Exploration mining companies:AngloGold Ashanti, Greystar, Mitsui, Rio Tinto, Vale, Corporación Minera de

Colombia, Grupo de Bullet, Cosigo, Carboandes, Continental Gold.

Services and Traders companies: Geominas, Serviminas,

CIIGSA, Fundición Escobar, Vector Colombia.

Cámara ASOMINEROSMEMBERS

Cámara ASOMINEROS

• Total GDP Growth

• Mines and hydrocarbons GDP Growth

• Mining GDP Growth

• Mining share as % of total GDP

• Mining exports (Million US$)

• Mining exports as % of total exports

• Mining Foreign direct investment (Million US$)

• Mining Royalties (Million US$)

Contribution of Mining Sector

to Colombian economy

2006

6,8%

3,2%

6,1%

1,6%

5,208

21,3%

1,783

369

2008

2,5%

7,3%

1,3%

1,5%

7,447

19,8%

2,116

645

2007

7,5%

2,9%

5,6%

1,5%

6,346

21,1%

1,047

469


COLOMBIAN MINING PRODUCTION 2008

Cerrejón

CerromatosoDrummond

Xstrata

Mineros

Norte de Santander

Boyacá

Cundinamarca

Coal: 73,5 Mtons. 10th in the world.

Cerrejón: 32 Mt

Drummond: 21.3 Mt

Xstrata: 10 Mt

Boyacá 2,3 Mt

Cundinamarca 2,4 Mt

Norte de Santander 2.0 Mt

Coal Exports: 70 Mt. 5th in world.

Nickel: 41,6 Ktons. Exported 100%

Gold: 34,3 Tons.

Limestone for cement: 12.5 Mt.

Emeralds: 2,1 Mkilates.

1st world producer.


Coal Production Trend

Source: Ingeominas y Minminas


713

126332

1680

3495

6346

495154

891 864

5043

7447

0

1000

2000

3000

4000

5000

6000

7000

8000

OTHER

MINERALS

EMERALDS GOLD NICKEL COAL TOTAL

2007 2008


Source: DANE

COLOMBIA: MINING EXPORTS

(Million US$)

507 524466

627

1.246

2.157

1.783

1.100

2.116

0

2.000

4.000

6.000

8.000

10.000

2000 2001 2002 2003 2004 2005 2006 2007pr 2008pr

Millo

nes d

e U

S$

M inas y Canteras (incluye carbón)

Resto de Sectores

Foreign Direct Investment in Colombia

Fuente: Balanza de pagos, Banco de la República

Mining is 20% of

total Colombia s

Investment in

2008

Mainly for Coal

Production.

Around 150 MUS

investments in

Mining

Exploration

Mining Investments shown in blue boxes


Cámara ASOMINEROS

COAL PRODUCTION FORECAST

Source: UPME

Colombia Coal Reserves: Measured: 7,000 Mtons. Potential: 17,000 MTons

Countries investing in

Colombia mining exploration


Cámara ASOMINEROS

Projected Mining Investments

Short Term 2009 2010

PROYECT/COMPANY ACTIVITIES

VALUE

Million

Dollars

El Descanso Open Pit Coal - Drummond Mine, Railroad, Port Expansions 1300

40 MT Coal Expansion - Cerrejón Mine, Railroad, Port Expansions 300

Calenturitas La Jagua Coal Pits - Prodeco Mine, Railroad, Port Expansions 274

Cerromatoso Nickel Third Line (BHP Billiton) Mine Expansion, Self-generation 100

New Gold Production Projects - Mineros S.ADredge Maintenance & "La Y"

underground mine25

El Hatillo Open Pit Coal - Vale Mine, Railroad, Port Development 300

La Colosa - Anglogold Ashanti Gold Exploration 50

Gramalote - B2Gold Gold Exploration 20

Angostura Open Pit Gold Mine - GreystarFeasibility Study and additional

Gold Explorations36

Other Projects - Anglogold Ashanti Metals Explorations 30

Other Exploration Projects - Various Metals Explorations 50

TOTAL INVESTMENTS 2485

Chiriguana

La Caro

Bogotá

Buenaventura

Medellin

Gamarra

Cali

Zazal

Puerto wilches

Bolombolo

La Felisa

La Tebaida

Neiva

Puerto Berrio

Carare

Envigado

Villa vieja

Espinal

Dorada

CIENAGA

Cartago

Belencito

Lenguazaque

Coal Corridor

Magdalena- Caribe Corridor

Altiplano Cundiboyacense Corridor

Carare Corridor

Pacific Corridor

B/QUILLA

Cámara de ASOMINEROSNEW INFRASTRUCTURE PROJECTS

Source: Transport Ministry

RAILROAD PROJECTS

PORTS

Existing Ports

Puerto Bolívar (29 MM Tones/YearCarbosan (2 MM Tones/year, Concession 2013)

Prodeco (4 MM Tones/Year Concession 2009)

Drummond (22 MM Tones/Year Concession 2023)

Soc. Portuaria de Ciénaga (0 MM Tones/Year Concession 2018)

Cementos del Caribe (1 MM T/Year)

Atlantic Coal (0.9 MM T/Year)

Soc. Portuaria de Barranquilla (0.5 MM T/Year)

Colclinker (1 MM T/Year)

Soc. Portuaria de Cartagena (0.2 MM Tones/Year)

Soc. Portuaria Golfo de Morrosquillo (0.1 MM T/Year)

Projected Ports

PUERTO MULTIPROPOSITO BRISA S.A. (0.5MM Tones/year-3MM T/Year)

PUERTO NUEVO , Coal (30MM Tones/Year-60MM T/Year)

Carbones del Carare S.A. (3MM T/Year)-5.4MM T/Year)

Cartagena Multipurpose CMT S.A. (0.2MM T/Year)

Graneles del Golfo S.A. (0.3MM T/Year-1.5MM T/Year)

Sociedad Portuaria del Sinú (1 MM T/Year)

BUENAVENTURA´S PORT

Optimization Opertation

Dredging channel of access

Capacity: 1 MT/Yr

Draft 36´

AGUADULCE PORT

Capacity: 2.5 MT/Yr

Draft 32´

PROJECTED COAL PORTS EXPANSION

IN THE PACIFIC OCEAN

PA

CIF

IC O

CE

AN

BUENAVENTURA


Colombia is still unexplored: Huge geologic and mining

potential due to the existence of two different geological

environments.

Strategic geographic location: Best corner of South America.

Democratic security policy: Improved security to access

exploration and production areas.

Attractive investment regulation: Free access to global

markets, tax incentives, legal stability contracts, FTZ regime.

Reasons to invest in Colombia’s mining

sector


Legal stability. Colombia has a proven track record of respectfor contractual terms and regulations. Offers the possibility ofsigning Legal Stability Contracts with the Government toprotect investments against adverse changes in law.

Business enviroment improvement. “Doing Business Report”.Better competitive position from 66 to 53 in last year.

Better mining investors perception. “2009 Fraser InstituteReport”. From position 56 to 46.

Key Global players operating in Colombia: BHP Billiton,Angloamerican, Xtrata, Drummond, Votorantim. Other majorplayers show strong interest in discovering Colombia: Vale,Anglogold Ashanti, Barrick, Mitsui, etc.

Reasons to invest in Colombia’s mining

sector



SOURCE: ANDI - SURVEY

PROBLEMA DE INSEGURIDAD

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SECURITY PROBLEMS

Cámara ASOMINEROS

• TO CONFIRM GOLD MINING RESERVES OF NEW DISCOVERIES.

• ESTIMATED RESERVES OVER 25 MILLION OUNCES .

• TO KEEP GROWING TREND IN COAL MINING PRODUCTION.

• DUPLICATING CURRENT COAL PRODUCTION IN NEXT 10 YEARS, UP TO 150

MILLION TONS PER YEAR.

• TO DEVELOP PLANNED NICKEL PRODUCTION EXPANSIONS.

• WITH NEW PRODUCTION LINE AND NEW COAL FIRED POWER SELF

GENERATION PROJECT.

• TO CONTINUE EXPLORATION BOOM FOR METALS.

• TO IMPROVE ENVIRONMENTAL APPROVAL PROCESSES.

• TO DIMINISH MINE DEVELOPMENT TIMING.

Challenges for Colombian Mining

Industry

Cámara ASOMINEROS

• TO DEVELOP NEW GOLD MINING RESERVES.

• FEASIBILITY STUDIES, ENGINEERING DESIGN, PROJECT CONSTRUCTION

MANAGEMENT, EQUIPMENT SUPPLIES & MANUFACTURING,

ENVIRONMENTAL MANAGEMENT, CONSULTING SERVICES.

• TO KEEP GROWING TREND IN COAL MINING PRODUCTION.

• COAL TECHNOLOGY APPLICATIONS, MINERAL HANDLING SYSTEMS,

EQUIPMENT SUPPLIES & MANUFACTURING, MINING PROCESSING &

MAINTENANCE TECHNOLOGY, CONSULTING SERVICES.

• TO DEVELOP PLANNED NICKEL PRODUCTION EXPANSIONS.

• PROJECT CONSTRUCTION MANAGEMENT, EQUIPMENT SUPPLIES &

MANUFACTURING, CONSULTING SERVICES.

• TO CONTINUE EXPLORATION BOOM FOR METALS.

• RESEARCH AND DEVELOPMENT, EQUIPMENT SUPPLIES &

MANUFACTURING, MINERALS EXPLORATION, LAB SERVICES.

Opportunities for Australian Technology

and Services Mining Industry

THANK YOU VERY MUCH

ANNEX:

List of key

mining

projects


Main projects in a

production stage

Project: Cerrejón

Location: Guajira

Ownership:

33% BHP Billiton

33% Xtrata

33% Anglo American

Mineral: Coal

Production/year: 30 MM

Tones


Project: La Loma

Location: Cesar

Ownership: Drummond

Mineral: Coal

Production/Year: 22.9 MM

Tones

Project: El Descanso

Location: Cesar

Ownership: Drummond

Mineral: Coal

Production/Year: begining

Main projects in a

production stage


Project: CMU-Tesoro-Jagua

Location: Cesar

Ownership: PRODECO Xstrata

Mineral: Coal

Production/Year: 4,4 MM

Tones

Project: Calenturitas

Location: Cesar

Ownership: Xstrata

Mineral: Coal


Tones

Main projects in a

production stage


Project: La Francia

Location: Cesar

Ownership: Coal Corp

Mineral: Coal


Tones

Main projects in a

production stage


Project: Cerromatoso

Location: Córdoba

Ownership: BHP

Mineral: Ferronickel

Production/Year: 108 MM

pounds

Main projects in a

production stage


Project: El Bagre

Location: Antioquia

Ownership: Mineros S.A.

Mineral: Gold (Alluvion)

Production/Year: 80.000 oz

Will increase production in

25.000 oz per year with

operation of two new dredges

acquired in Brazil.

Main projects in a

production stage


Project: Lower Marmato

Location: Caldas (Marmato)

Ownership: Mineros

Nacionales

Mineral: Gold (Vein)

Production/Year: 30.000 oz

Main projects in a

production stage


Project: Paz del Río

Location: Boyacá

Ownership: Votorantim

Mineral: Iron Ore

Production/Year: 624.000

Tones

Main projects in a

production stage


Project: Angostura

Location: Santander (California)

Ownership: Greystar Resources

Mineral: Gold (open pit)

M&I Resource: 7 MM oz

Inferred resource: 6 MM oz.

Drilling: > 200.000 ml


Feasibility project

Project: La Colosa

Location: Tolima (Cajamarca)

Ownership: Anglogold

Ashanti

Mineral: Gold

Inferred resource: > 10 MM oz


Some exploration projects

Project: Gramalote

Location: Antioquia (San Roque)

Company: B2Gold-AGA


Inferred resource: 2.5 MM Oz

Drilling: 320.000 ml / 450 ml deep.



Project: La Y

Location: Antioquia

(Zaragoza)

Ownership: Mineros S.A.

Mineral: Gold (vein /

underground)

Proven Reserves: 300.000

oz

It will start production in

February or March 2009. It is

conducting additional

exploration to increase proven

reserves.



Project: Río de Oro

Location: Norte de Santander

(Tibú)

Ownership: Geominas and

others

Mineral: Coal

Inferred resource: 320 MM

Tones

Proven reserves: 60 MM Tones



Project: Upper Marmato

Location: Caldas (Marmato)

Ownership: Colombia

Goldfields

Mineral: Gold (Veins)

Inferred resource: 2.5 MM oz

Drilling: 32.000 ml



Project: Quebradona

Location: Antioquia (Jericó)

Ownership: AGA – B2Gold

Mineral: Gold

Inferred resource: 1.5 to 2 MM

oz

Drilling: 6.000 ml / 300 ml. deep



Project: San Jorge

Location: Córdoba

Ownership: BHP Billiton

Mineral: Coal

Bidding process of

Ingeominas



Project: Acandí

Location: Chocó

Ownership: Anglo American

Colombia Exploration

Mineral: polymetallic sulphide

Bidding process of

Ingeominas



Project: Pantanos Pegadorcito

Location: Antioquia (Frontino-

Dabeiba)

Ownership: Carbones de la

Loma

Mineral: polymetallic sulphide

Bidding process of

Ingeominas



Project: Taraira

Location: Vaupés (Taraira)

Ownership: Cosigo-Frontier

Mining Corporation

Mineral: Gold

Bidding process of

Ingeominas



Project: Mocoa

Location: Putumayo

Ownership: B2Gold

Mineral: Copper and

Molybdenum

Drilling: 5.000 ml



Project: Miraflores

Location: Risaralda (Quinchía)

Ownership: B2Gold


Inferred resource: 0.8 MM oz




Project: Mandé Norte

Location: Chocó-Antioquia

Ownership: Muriel Mining

Corporation

Mineral: polimetálicos

Resources: begining

exploration



Project: OTU Gold

Location: Remedios Antioquia

Ownership: Otu Gold (Grupo

de Bullet)

Mineral: Gold

Resources: beginning

exploration


Bullet Precious Metals

Generator of high potential Au exploration projects (Gramalote, Buriticá)

Strong project pipeline with work completed on various projects

Most promising mineral districts

Bogotá

Calí

Medellín

Cartagena


Bullet Base Metals

Polymetallic projects

Projects in most promising mineral districts, mostly in Western Cordillera

Porphyry Cu(-Au) - Murindo

Potential - Dabeiba

Bogotá

Calí

Medellín

Cartagena


Bullet Fuel Minerals (coal)

El Tambo ProjectThermal coal deposit in Southwest Colombia – 67,000 Ha

≈3,500m of drilling by Ingeominas in the 1990s

Estimated +64M tonne thermal coal resource

Bogotá

Calí

Medellín

Cartagena


Documents

UNLOCKING COLOMBIA´S MINING POTENTIAL - ALABC · Minera El Roble (Copper concentrades). ... Colombia, Grupo de Bullet, Cosigo, ... PUERTO MULTIPROPOSITO BRISA S.A