GOLD - The AusIMM

Exploring Mining
Opportunities?
The answer is Colombia
María Constanza García
President
Melbourne - May 31, 2013
Colombia is on the radar
of mining investors…
USD$1 out of USD$6 of FDI is made in
mining
3.500
3.000
2,250
USD Million
2.500
2.000
1.500
1.000
500
507
0
Improving security.
Knowledge of the mineral potential
Source: Central Bank of Colombia.
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
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.
•Coal - Ferronickel
•Coal
•Coal
•Gold
•Gold
•Coal
•Coal - Gold
•Coal
•Steel - Coal
•Gold
•Gold
•Building materials
•Building materials
Country of origin
•CerrejónCerromatoso
•Cerrejón
•Cerrejón
•Sorotama
•Anglo Gold Ashanti
•Drummond
•AUX
•Prodeco
•Paz del Rio
•Gramalote
•Gran ColombiaGold
•Holcim
•CEMEX
Mineral
•BHP Billiton
•Anglo American
•Xstrata/Glencore
•Barrick Gold
•Anglo Gold Ashanti
•Drummond
•EBX
•Xstrata/Glencore
•Votorantium Group
•B2 Gold
•Gran Colombia Gold
•Holcim
•CEMEX
Subsidiary in Colombia
Company
Top foreign mining companies with
investments in Colombia
•Australia
•South Africa
•Switzerland
•Canada
•South Africa
•United States
•Brazil
•Switzerland
•Brazil
•Canada
•Canada
•Switzerland
•Mexico
Source: National Mining Agency
Colombia has the potential
to significantly expand its
mining industry
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: http://www.simco.gov.co/simco/portals/0/Guia_Inv_2008/3_mining_4.swf
Significant mineral resources found in
Colombia
Mineral
Emeralds
Platinum
Thermal Coal
Nickel
Gold
Copper
World
ranking
1
5
9
9
19
48
Latin
America
1
1
1
2
6
6
Source: Nickel (2012): US Geological (Survey 2013), Coal (2012): World
Coal Association, Gold (2011): Reuters.
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
COAL
Production
GUAJIRA
39%
CESAR
52%
Coal Production
N. SANTANDER
3%
120
103
100
86 89
M Ton
80
60
40
38
44
50
54
60
66
70
94
74 73 74
CUNDINAMARCA
2%
39
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: National Bureau of Statistics - DANE. Mining and Energy Planning Unit-UPME.
Ministry of Mines and Energy.
BOYACA
3%
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%
Source: Colombian Geological Service - CGS
Underground
mining 10%
Thermal 95%
Metallurgical
5%
COAL
Colombia has the largest coal reserves in Latin America
La Guajira
Reserves
Reserves
Thermal
Thermal
Córdoba
Reserves
Reserves
Thermal
Thermal
4,298
4,298
Santander
Reserves
462
Reserves
462
Thermal,
Thermal,Metallurgical
Metallurgical
Antioquia – Antiguo Caldas
Reserves
471
Reserves
471
Thermal
Thermal
Thermal, Metallurgical
6,291
Norte de Santander
Reserves
780
Reserves
780
Thermal,Metallurgical
Metallurgical
Thermal,
719
719
Valle del Cauca - Cauca
Reserves
241
Reserves
241
Reserves
241
Thermal,
Metallurgical
Thermal, Metallurgical
Cesar
Reserves
Reserves
Thermal
Thermal
Cundinamarca
Reserves
1,467
Reserves
1,467
Thermal,
Thermal,Metallurgical
Metallurgical
Boyacá
Reserves
1,703
Reserves
1,703
Thermal,
Thermal, Metallurgical
Metallurgical
Source: Mining and Energy Planning Unit-UPME
GOLD
Production
BOLÍVAR
6%
Gold Production
66.2
60
120%
50
Tons
160%
80%
40
40%
30
0%
20
-40%
10
0
-80%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Mining and Energy Planning Unit-UPME.
Mainly alluvial extraction
% annual growth
70
ANTIOQUIA
41%
CHOCÓ
37%
TOLIMA 1%
CAUCA
5%
NARIÑO
4%
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
GOLD
NI 43-101 Au oz Discovered
2006-2012
Large increase in discoveries and
production
Source: Colombia Gold Report/The Gold Letter-Paul Harris
COPPER
Production
CHOCO
100%
Copper Production
10.000
60%
9.000
Tons
7.000
20%
6.000
00%
5.000
4.000
-20%
3.000
-40%
2.000
% annual growth
40%
8.000
-60%
1.000
0
-80%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
* Data from Sep 2012. Source: Mining and Energy Planning Unit-UPME.
COPPER
Main Projects
Santa Helena
(CuOro Resources)
Antioquia
Comita
(Rugby Mining Limited)
Choco
El Roble
(Atico Mining Corp.)
Choco
MoU with Codelco
Ramos Laverde (Salazar
Resources) Nariño
Mocoa
(B2Gold)
Putumayo
NICKEL
Production
CÓRDOBA
100%
Nickel Production
60
60%
52,0
40%
40
20%
30
0%
20
-20%
10
0
-40%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Mining and Energy Planning Unit-UPME.
% annual growth
Thousand tons
50
PLATINUM
Production
CHOCO
99%
Platinum Production
Condoto Platinum
1.600
120%
1.460
1.400
80%
1.200
60%
1.000
Kg
100%
40%
800
20%
600
% Annual growth
1.800
400
00%
200
-20%
0
-40%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Mining and Energy Planning Unit-UPME.
Colombia is the most underexplored country in the
Andean region for minerals
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 2012-2013
Country with up and coming
opportunities
Existing mining titles
8.886 9.073 9.428
8.126
7.343
5.067
5.816 5.691 6.043
36% in exploration,
25% in assembly and construction,
39% in operation (exploitation).
3.649
2.965
Entitlement area by mineral
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
5%
Precious metals
2%
2%
Coal
5%
Building
materials
Other
9%
Entitlement area of 5.2M Ha.
52%
25%
Limestone
Clay
Emeralds
21
Legal Framework of
Mining Concessions
Mineral Tenure Systems
Staking (first come first served)
•Any mineral
•Any area not claimed for mining
•Any individual or company
•General requirements
Public Bidding Process
• 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.
Staking: Procedure
Application
Technical and
legal
evaluation
Inscription in
the National
Mining Registry
Decision
Refusal
• Buy Pin Code
(Rights to apply
online)
• Apply online
• 3 Days to present
required
documents
The authority
may request
supporting
documentation
Re-open applications system July, 2013
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
Public Bidding Process:
Phases
Geoscientific
data compilation.
Structure the
process.
2013
Launching the
Process
1st Competitive
Process
2014
Concession Contract
Prior Consultation process
*National Mining
Registry
Colombia is a golden
opportunity.
Let us assist you at
the NMA
Thanks