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Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
Presentation - Mining as an Engine for Prosperity in Colombia
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Presentation - Mining as an Engine for Prosperity in Colombia

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Presentation - Mining as an Engine for Prosperity in Colombia …

Presentation - Mining as an Engine for Prosperity in Colombia
Henry Medina - Vice Minister of Mines

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  • 1. Mining as an engine for prosperity in COLOMBIA Henry Medina Vice Minister of Mines
  • 2. Mining sector in Colombia plays a significant role In 2011 22% of exports came from mining sector ROYALTIES & TAXES In 2011 royalties grew 34%Source: Colombia Geological Service for Mining National Hydrocarbons Agency DIAN
  • 3. Coal example - Growth is possible COAL PRODUCTION MTn COAL PROJECTS Cerrejón La Loma El Descanso Calenturitas La Francia Interamerican Coal Centromin Paz del Río MILPA Carbocoque Production 85.8 MTn (2011), Increase 15,4% UniminasReserves 6,900 MTnRanking 6th exporter and 10th producer in the worldCharacteristics Thermal coal: 96% Metallurgic coal: 4%Thermal capacity 10,000 - 12,000 BTUGrowth levers • Expansions and new projects • Adequacy of infrastructure system • Environmental licensing and social support • sustained security Source: Colombian Geological Service
  • 4. We are making strategical decisions POLICIES INSTITUTIONS REGULATION Organise the mining  Vice Ministry of Mines sector  Private – Public  Colombian Geological Alliances Law Grow the mining sector Service  Strategical Minerals  National Agency of Mining formalization Mining  Strategical Areas Ilegal mining eradication  National Agency of  Mining Code Reform Infraestructure Safety & Health technical formation  National Agency of Environmental Licenses 2010 - 2014
  • 5. We are making changes to become minning leaders FROM TO Suboptimal and disorganised use of mining  Strong National Agency of Mining resource Lack of knowledge of colombian mining  Ingeominas into focused Colombian potencial Geological Service Incomplete and weak cadastre  New Web readicator, and modern arquitecture with World Bank advisory Deficient government oversight of mining  Earmarked resources for strong fiscalization activity process & formalization program No clear line of sight of major projects from  Specialized Projects of National Interest early stages (PIN) Unit No clear governmental entity to promote artisanal and small scale mining  New Vice Ministry of Mines with 2 Directorates No formal inter-institutional coordination
  • 6. We have defined strategical minerals  Cooper  Iron  Uranium  Niobium & Tantalum (Coltan)  Potassium Minerals Thermal & Metalurgical Coal Gold Platinum Magnesium Minerals Phosphate Minerals
  • 7. 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 TerritorySource: Colombian Geological Service
  • 8. We can grow in other areas GOLD Tn GOLD & SILVER AREAS / PROVINCES Antioquia Bolívar Caldas Cauca Cesar Chocó Huila Nariño SILVER Tn Tolima Risaralda Putumayo Valle del Cauca Norte de Santander LISTED TMX FIRM PROJECTS Resources Measured & Resources Measured & Indicated, Indicated, Inferred Au Moz Inferred Ag Moz Strategical Areas 2.9 m ha 31.4 90.1 Gold and Silver 2.3 m haSource: Colombian Geological Service
  • 9. Strategic Mining - Award Rounds Preliminary PREPARATION LAUNCH EVALUATION AWARD• Preliminary • Lauching Session • Admission and • Award identification of evaluation of Blocks • Sale of Data Packages preliminary proposals • Signing of agreements• Strategic • Road Shows • Publication of the environmental and Participants List social planning • Call for Preliminary Proposals • Deposit of Proposals -• Final demarcation of Public Session Blocks • Evaluation of Final• Elaboration of Data Proposals Packages CRITERIA OPTIONS (WIP) • Exploration Track Record 2012 and activity commitments • Level of state partnership Ronda 2013
  • 10. We are working on infraestructure projects RAIL ROADS O. ATLANTICO Santa Marta Dibulla Chiriguaná La Mata Capulco Cúcuta Bucaramang20 million tn with Carare Train Major Project will be key for evacuation of a Barrancaber Cupica B.del La Vizcaínaminerals from the interior Carare Pto. Berrío meja P.Araújo Medel Pto. Boyacá O. PACÍFICO Bolombolo Vélez Duitama lín Puerto Chiquinquirá La Felisa Salgar La Isla Cartago Bogotá La Tebaida Ibagué Buenaventur a Cisne Cerrito ros Cali Source: Ministry of Mines and Energy 2 Major rail road projects with access to Atlantic Actual Rail Road Distance Required Capacity Capacity FENOCO 245 kms Line 1 Lines 1 -2 Chiriguaná – Santa Marta 45 mill tn year 90 mil tn year CERREJÓN 150 Kms 70 mll tn year 150 mil tn year Barrancas – Puerto Bolívar
  • 11. We are working on infraestructure projects COAL PORTS 13 ports in 5 provinces La Guajira, Magdalena, Atlántico, Bolívar and Valle with access to Atlantic Sea Today Ports capacity is around 90 million tn If we want to export Needed Capacity 115 mll tn 138 mill tn 3 Major Projects Puerto Brisa - Puerto Drummond – Puerto Nuevo Colombia exports by ports around 92% of main production of Coal (80 million tn) that represents $1.3 billon pesos to economySource: Ministry of Mines and Energy
  • 12. And creating appropriate security conditions Attacks against infrastructure Security improvements in recent years have also benefited the oil and mining sector Ilegal Armed Groups AttacksSource: Ministry of Defense
  • 13. We are partners and allies Companies Listed on TSX with mining 50 properties in Colombia No. Companies 30 40 28 10 -10 Dic. 2010 Dic. 2011 During last ten years Canadian companies have been working in Colombian projects We expected new investors to work with us 81 ProjectsSource: www.tmx.com, 24th february 2012 - MME
  • 14. It will be posible to achieve goals and results COOPER AREAS/PROVINCES 4,000 3,800 3,697 3,410 3,502 COOPER - Tn 3,500 3,136 Antioquia 2,908 3,000 Caldas Cauca 2,500 2,275 Cesar 2,099 Chocó 2,000 1,678 1,567 Huila 1,500 1,328 La Guajira 1,161 Nariño 1,000 Norte de Santander 500 Putumayo Quindío 0 Risaralda 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Tolima Valle del Cauca LISTED TMX FIRM PROJECTS Resources Measured & Indicated Cu MLb 765,5 Strategical Areas- 2.900 ha Cooper 2.157 haSource: Colombian Geological Service
  • 15. We are working on infraestructure projects RAIL ROADSRoads are the only mean of transportation off all Metalurgicaland Coque Coal produced in Cundinamarca, Boyacá,Santander and Norte de Santander provinces Source: Ministry of Mines and Energy The main production of this provinces is around 8 million tn exported principally by Barranquilla, Cartagena and Buenaventura Ports
  • 16. Mining sector in Colombia plays a significant role 8 35% 29% 7 30% 6 23% 25% 20% 21% 5 19% 19% 18% % MiningUSD Billions 20% 4 14% 3.9 20% of FDI in 2011 was to mining, 15% 3 2.5 2.7 increasing 32% over 2010 2.1 1.7 10% 2 1.2 0.9 0.7 0.9 5% 1 0.6 0.5 0.6 0.7 0.1 0.3 0.3 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 Mining Hydrocarbons % Mining/Total 18,000 30% 25% 24% 22% 15,000 25% 21% 21% 20% 20% 12,454 Millions USD FOB 20% 20% % Mining Exports 12,000 20% 9,421 In 2011 22% of exports came from 9,000 13% 7,447 8,154 15% mining sector 6,346 6,000 5,208 10% 4,302 3,320 2,639 3,000 5% 1,523 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (pr) (pr)Source: Banco de la República Mining Exports Mining/Total Exports
  • 17. We want to bcome Leaders in miningEfficient governmental institutions and responsible mining sector Access mining potential and consolidate growth Prosperity for Colombia
  • 18. Thank You Henry MedinaMinistry of Mines and Energy hmedina@minminas.gov.co

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