This document provides an overview of Best Coal Company, a coal mining investment company owned by Yildirim Holding in Colombia. It discusses BCC's integrated coal mining, port, and railway assets in La Guajira, Colombia, which include two open-pit mines, one underground mine, a 50 Mtpa coal loading port, and a 140,000 ton/day railway. The document also outlines strategies to address issues related to past failures of extractive industries, ensure responsible development, and gain community support through local job creation, skills training, and prioritizing social development and transparency.
1. March 2018
Best Coal Company
by YILMADEN Holding of Istanbul, Turkey
Dr. Alp MALAZGIRT
CEO, YILMADEN HOLDING
….THE BOMBASTIC SAN JUAN PROJECT
2. 2
YILDIRIM GROUP OVERVIEW
We Operate in 4 Continents & 28 Countries
Canada
United
States
Colombia
Peru
China
Russia
Kazakhstan
Turkey
Malta
Switzerland
France
Ireland
United Kingdom
Norway
Sweden
Portugal
Spain
Singapore
Belgium
Netherlands
Ecuador
South Africa
Namibia
Angola Tanzania
Zambia
Mozambique
Zimbabwe
3. 3
ETI KROM: #1 The world’s LARGEST
marketable hard lumpy chrome ore
producer in the world, and the ONLY
high quality high carbon ferrochrome
producer in Turkey.
YILKROM: Mineral exploration
company offering local and
international investors the chance to
partner with YILDIRIM’s deep
experience and knowledge in mining.
VOSKHOD CHROME: Chrome
concentrate plant in Kazakhstan, and
one of the highest quality chrome ore
mines in the world.
VARGÖN ALLOYS: The oldest and
highest quality ferroalloys producer in
the world.
TIKHVIN FERROALLOY: High carbon
ferrochrome producer in Russia, and
the most modern ferroalloy plant in the
CIS.
BEST COAL COMPANY: Coal
mining investment company in
Colombia, and the largest
integrated underground coal
mining project in the Americas.
(Rebranded from YCCX, active
2014-2016.)
BEAR METALLURGICAL COMPANY:
Ferrovanadium and ferromolybdenum
production plant in the USA.
YILYAK: The LARGEST and #1 sized
coal importer in Turkey.
YILCOQUE: Metallurgical coke
production company in Cúcuta,
Colombia.
GEMLIK GUBRE: The LARGEST
producer and exporter of calcium
ammonium nitrate (CAN) fertilizers and
ammonia in Turkey.
YILKEM CHEMICALS: One of
Turkey’s largest, and top trading
companies in chemicals and
petrochemicals.
YILPORT GEBZE: The most advanced
multi-purpose handling terminal in Turkey.
YILPORT GEMLIK & YILPORT GEMPORT:
Being merged to form the most advanced
and efficient container terminal in Turkey.
YILPORT SOLVENTAS: The largest liquid
handling and storage terminal in Turkey.
YILPORT YARIMCA: Being expanded to
form the largest bulk and general cargo
terminal in Marmara.
MALTA FREEPORT: One of the leading
transshipment and logistics centers in the
Mediterranean.
GÄVLE CONTAINER TERMINAL: #3
largest container terminal in Sweden
BALTIC SEA GATEWAY: Multipurpose dry
bulk terminal in Port of Gävle in Sweden.
STOCKHOLM NORD COMBI TERMINAL:
Full-service intermodal terminal and an
important logistics center for Sweden.
PORT OF OSLO: The largest container
terminal in Norway, handling over 30% of
the country’s container volume.
TERTIR: Portuguese company that consists
of 7 terminals in Portugal, 2 in Spain, 1 in
Peru.
PUERTO BOLÍVAR: Being built in Ecuador
to create the LARGEST container terminal
in the Pacific Coast of Latin America.
ETI LOGISTICS: End-to-end logistics
services provider in Turkey.
TRANSITEX: Forwarding company that
specializes in reefer containers, active in 23
countries.
Port Management & Logistics Group
YILPORT HOLDING
Energy Production Group
YILDIRIM ENERGY HOLDING
4 GREENFIELD POWER PLANT
PROJECTS IN TURKEY
• Filiz Kirazlidere Thermal Power
Plants, Canakkale - 2 x 800 MW
• Sarikaya Karaburun Thermal Power
Plants, Canakkale - 2 x 800 MW
• Pegai Natural Gas Combined Cycle
Power Plant, Aydin - 600 MW
• Ruzgar Tepe Natural Gas Combined
Cycle Power Plant, Tekirdag - 600
MW
3 HYDROELECTRIC POWER PLANTS
OPERATIONAL
IN TURKEY
• Gullubag Hydroelectric Power Plant,
Erzurum - 96 MW
• Bayramhacili Hydroelectric Power
Plant, Nevsehir - 47 MW
• Hasanlar Kanal Hydroelectric Power
Plant, Duzce - 4.7 MW
Energy Trade Group
YETAS: Power and gas trade company
YILMAR HOLDING
Shipping Group
YILMAR SHIPPING AGENCY
LOGISTICS & TRADING:
The Group’s shipping and logistics
operations company with a fleet of 11
dry bulk & general cargo vessels.
SOLAR CHARTERING: Commercial
management company for chemical
tankers.
CHEMFLEET & DRYFLEET: Technical
management company for chemical
tankers and general cargo vessels.
YM TANKER HOLDINGS: Ship owner
company with a fleet of 10 chemical
tankers.
TRANSITEX: Freight forwarding and
agency company with operations in 40
countries.
YILDIRIM ASSET
MANAGEMENT HOLDING
CMA CGM: 3rd Largest container
shipping company in the world, 24% of
shares owned by YILDIRIM.
SEALEASE: Niche maritime company
in Belgium and global provider of full-
service leasing products to yacht
chartering companies and passenger
boats, 75% of shares owned by
YILDIRIM.
Real Estate Development Group
BEYKOZ KUNDURA: Historical
renovation and real estate
development project established on an
Ottoman-era tannery and shoe factory
on the Bosphorus in Istanbul.
Affiliated Subsidiaries
ETIPET: Fuel oil, gas oil and diesel oil
distributor in Elazig, Turkey.
ETI BETON: Ready-mix concrete supplier
that recycles ferrochrome slag.
GARIP & ZEYCAN YILDIRIM
FOUNDATION:
Established in 2015 to develop social
responsibility projects on education,
health, and culture.
YILMADEN HOLDING
Metals & Mining Group
Coal & Coke Group
YILFERT HOLDING
Fertilizers & Chemicals Group
Shipbuilding Group
MARMARA SHIPYARD: Shipbuilding
company located at the Gulf of Izmit, with
a capacity to build up to 2x16,500 DWT
vessels per year, and conduct regular
maintenance and repairing operations for
vessels.
BUSINESS
SECTORS
4. 4
Environmentally
Friendly Power
Producer & Investor
(5 GW)
Cr Ore Producer
Hard Lumpy Marketable Cr Ore Exporter
High Quality HC FeCr Producer
HC FeCr Producer Chromium Industry
Energy
25%
30%
100%
Market Share
#5 (TURKEY)
Fertilizers & Chemicals
#1(TURKEY)
CAN Producer
CAN Exporter
Ammonia Exporter
35%
90%
100%
Coal & Coke
Coke Importer
Sized Coal Importer
29%
16%
#1
#2
MarketShare
#2(WORLD)
#1(TURKEY)
#4(WORLD)
(TURKEY)
(TURKEY)
Market Share
Port Operation & Management
State-of-the-Art
Container Terminal Operator in Turkey
The Most Effective & Productive
Container Terminal Operating Company
in Turkey
10%
Market Share
International Container
Terminal Operator (2017) #13
#1
(TURKEY)
(WORLD)
Metals & Mining
by 2023
YILDIRIM GROUP OVERVIEW
Business Sectors
Chromium
5 GW
CAN & Ammonia
Projects to build for
Energy Production
#1
5. 5
COLOMBIA
La Guajira
INTEGRATION
ASSETS
DIVERSIFICATION
QUALITY
EXECUTIVE SUMMARY
BCC Overview – Colombia
LOGISTICS
NI43-101 Certified
World Class
Reserves: 714 Mt
(5.8Bn tons of Resources)
(2016)
An investment opportunity in coal mining
industry with integrated port & railway
facilities, located in Colombia
Two Open Pit Mines &
One Underground Mine
One of the lowest cost production
and best quality coal projects in the
world.
Diversified customer & end-user
alternatives
Port: 50 Mtpa of Coal Loading Capacity
Railway Capacity: 140,000 tons/day
6. 6
80,5 78,4 81,6 88,0
101
131
1.003 988 1.011 1.043
1.200
1.557
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2015 2017 2019 2021 2025 2040
Milliontons
Others
South Africa
Russian Fed.
Indonesia
Colombia
China
United States
Australia
Tot. Imp./Exp.
Global Thermal Coal Trade
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2013 2014 2015 2016 2017 2018 2019 2020 2021
Mtce
Latin America
Other developing Asia
ASEAN
Eastern Europe/Eurasia
Africa and Middle East
India
China
United States
Global Thermal Coal Demand
Source: IEA Source: IEA
China and India will drive 75% of coal demand growth until 2035
Coal: The world’s single largest energy source in 2030
GLOBAL THERMAL COAL
Demand
7. 7
Source: IPCC
Coal combustion: The world’s largest source of carbon dioxide emissions
15 million tons of CO2 per year
Climate problem = Coal problem
Source: EIA
GLOBAL
GAS EMISSIONS
8. 8
We should burn coal with less carbon dioxide emissions
Source: EIA Source: EIA
GLOBAL
INVESTMENT
9. 9
Plant Name Installed Cap. (MW) Coal Type Start date of Op Technology Thermal Efficiency (%)
Soma A 2 x 22 Lignite 1957;1958 PC Sub-critical R&D
Seyitömer 4 x 150 Lignite 1973;1973;1977;1989 PC Sub-critical 31,98
Tunçbilek (B 4-5) 2 x 150 Lignite 1977;1978 PC-Sub-critical 33,23
Yatağan 3 x 210 Lignite 1983;1983;1984 PC-Sub-critical 35,07
Afşin Elbistan-A 3 x 340; 1x335 Lignite 1984;1985;1986;1988 PC-Sub-critical 28
Soma B 6 x 165 Lignite 1981;1982;1985;1985;1991;1992 PC-Sub-critical 28
Yeniköy 2 x 210 Lignite 1986;1987 PC-Sub-critical 34,12
Çayırhan 2 x 150; 2 x 160 Lignite 1987;1987;1998;1999 PC-Sub-critical 35
Kangal 2 x 150; 2 x 157 Lignite 1989; 1990; 2000 PC-Sub-critical 35,21
Çatalağzı 2 x 150 Hard Coal 1989, 1991 PC-Sub-critical 34,39
Orhaneli 1 x 210 Lignite 1992 PC-Sub-critical 27
Kemerköy 3 x 210 Lignite 1994;1994;1995 PC-Sub-critical 34,51
Sugözü-İskenderun 1 x 1320 Imported Hardcoal 2004 PC 39
Afşin Elbistan-B 4 x 360 Lignite 2009 PC 39
Çolakoğlu Metalurji 1 x 190 Imported Hardcoal 2012 PC 34
18 Mart - Can 2 x 160 Lignite 2003 Circulating Fluidized Bed 41
Silopi 1 x 135 Asphaltite 2009 Circulating Fluidized Bed 38
Biga - Değirmencik 3 x 135 Imported Hardcoal 2005 Circulating Fluidized Bed 37
ZETES - 1 1 x 160 Imported Hardcoal 2010 Circulating Fluidized Bed 36
ZETES - 2 2 x 615 Imported Hardcoal 2010 Super Critical 41
ZETES – 3 2 x 700 Imported Hardcolad 2016 Super Critical 41
Bekirli Çanakkale 2 x 600 Imported Hardcoal 2011,2013 Super Critical 42
Atlas Energy 2 x 600 Imported Hardcoal 2014 Super Critical 43,65
Izdemir - Aliaga 1 x 350 Imported Hardcoal 2014 Super Critical 44
Sarıkaya Karaburun (YEH) 2 x 800 Imported Hardcoal 2023 Ultra Super Critical 46
Filiz Kirazlıdere (YEH) 2 x 800 Imported Hardcoal 2023 Ultra Super Critical 46
POWERPLANTS &
TECHNOLOGIES IN TURKEY
11. 11
Source: EIA
• Understand political economy of transition from primitive agriculture-based economy to a more
productive and more prosperous economic environment
• Coal production increase: 38 million tons in 2000 ► 90 million tons in 2015
• Coal industry: 1.5% of Colombia’s gross domestic products and constituted about 10% of its
exports in 2017
• Turkey: The largest coal importer from Colombia in 2017
• 100 million tons targeted. Only 88 million tons produced
• Yılmaden will act in good faith, and will introduce a new paradigm in extractive industries in
Colombia.
WHO GETS TO EXTRACT AND
WHO WILL BENEFIT FROM THE REMAINING FOSSIL FUELS?
12. 12
Facilitating imports of key industrial goods impeding development and
effective use of domestic industrial and human skills.
Average municipalities which received large amounts of royalties from
extractive activities somehow did not fare better on social indicators
such as education, health and public infrastructure.
Anti-coal anti-mining companies’ propaganda is hampering all the
attempts all the good intentions of companies.
PAST SINS OF EXTRACTIVE
INDUSTRIES
13. 13
Demographic change in the resettlement of also contributed to communities
feeling disconnected from the landscapes that are essential to their identity.
The overlap of the land areas destined to be returned to victims of the
conflict an existing or requested mining titles
Paramilitaries and the second largest Colombian guerrilla group the
National Liberation Army, might fight to control areas now freed from FARC’s
control
ISSUES
15. 15
#1STRATEGIES
• Avoid the entire thing altogether
• Responsible mineral development initiative
• Understanding stakeholder’s expectations of value creation
16. 16
• Demonstrate and enhance company value to communities
and the local people and the nation at large
• Awards and accolades by IFC and EBRD
• Kazakhstan’s and Russia’s tax champions
• Zero Turkish personnel in the operations abroad
• Demonstration from local officials to highest level of political power
• Realistic approaches unlike the previous owners
• Long-term economic and social development through San Juan mine
#2STRATEGIES
17. 17
• Think global, act local
• Become local, avoid being seen as a Turkish company
• Build local capacity through training and skills programs
• Attend people’s lives
#3STRATEGIES
18. 18
• Create and enforce strict policies on transparency and compliance
• Strict anticorruption and transparency policies
• Well-informed and trained employees on anticorruption policies
• Zero tolerance to employees and managers
• Partnerships like the EITI and the forms partnering against corruption initiative
• Being a strong supporter of initiatives for conflict free minerals
such as the Kimberley process
• Implementation will represent the cost for the company and it requires us
to bring in new skills
#4STRATEGIES
19. 19
• Alignment of security needs, community affairs
• Understand the geopolitical risk scale
• Effective unspoken tacit actions
• Prioritize locals to create jobs
• Have open conversation with local authorities about public security
• Decouple inside operators from public security forces
#5STRATEGIES
20. 20
Achieving a 50% thermal efficiency in
the next 10 to 15 years is impossible
Yıldırım Energy hold two 2x800 MW
power station licenses totalling 3600
MW of power
Enough evidence that strategies developed in Turkey, Sweden, Russia, and
Kazakhstan will also continue to work in Colombia