COLOMBIA MINING OUTLOOK

Bogot, mayo de 2011

Colombia Basic Figures

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: Bogot (7 Million inhabitants) GDP* US$ 240 Billion Fourth largest economy in South America. GDP/Capita* US$ 4989 FDI (2010) Literacy Rate: 94.2% System of Government: Presidential Republic. Balance of powers between executive, legislative & judicial branches.
*: International Monetary Fund 2008.

US$ USD$6.760 million

 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 ANDIs 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 optimum business environment, through participation with the public sector, for the sustainable development of Colombias mining industry.

MEMBERS
Production Mining companies:
Cerromatoso (BHP Billiton). (Open Pit Nickel Mine). Cerrejn (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 Cristbal, Prominerales, Triturados El Chocho (Construction materials).

Exploration mining companies:

AngloGold Ashanti, Greystar, Mitsui, Rio Tinto, Vale, Corporacin Minera de Colombia, Grupo de Bullet, Cosigo, Carboandes, Continental Gold. Services and Traders companies: Geominas, Serviminas, CIIGSA, Fundicin Escobar, Vector Asenco Colombia.

COLOMBIAN MINING PRODUCTION 2010

Carbn: 74,3 Mtons.
Cerrejn

Cerromatoso

Drummond Xstrata
Norte de Santander

Cerrejn: 31 Mt Drummond: 21, Mt Prodeco: 5,33 Mt Otros Guajira y Cesar: 9,7 Mt. Otros Interior: 7,5 Mt

Mineros

Nquel: 49.443 Ton (Cerromatoso) Oro: 53,6 Ton. Plata: 15,3 Ton Platino: 0,97 Ton Cobre: 3.555 Ton Caliza para Cemento: 11,7 Mt. Esmeraldas: 5.230 Miles de quilates

Boyac Cundinamarca

(Coal)

One of the major coal producers in the world: 74.3 million tons (2010). Cerromatoso is the only producer of nickel, recovered their normal volumes with more of 49 thousand tons (2010) nickel
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a n o T d s e l i M

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(Gold)
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Fuente:

Ingeominas

Cmara ASOMINEROS

Contribution of Mining Sector to Colombian economy

2007 2008 2009 1,5% 11,4% 6,7% 1,6% 2010 4,3% 11,1% 2,2% 2,0% 6,9% 3,5% 2,9% 7,3% 5,6% 1,3% 1,5% 1,5% 6.346 21,1%

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$)

7.447 8.154 9.421 19,8% 24,8% 23,7% 3.025 708 2.055 650

1,100 1,798 468 645

Mining Royalties (Million US$)

Source: DANE, Banco de la Repblica Ministerio de Minas y Energa

EXPORTACIONES MINERAS AO 2010 (Millones US$)

Source: Fuente: DANE Informacin Minera Colombiana) sobre la base de estadsticas oficiales del Banco de la Repblica. IMCPortal (Portal de

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M D S U s e n o l i

Minas y Canteras (incluye carbn) Resto de Sectores

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El 30% is mining

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Mining Investments shown in blue boxes

Source: Banco de la Repblica

Estimated investment in the Mining Sector (2010 to 2020)

SECTOR
Expansiones en Carbn y nuevos proyectos Expansiones en metales bsicos y nuevos proyectos Expansiones en Oro y nuevos Proyectos Actividades en Exploracin
INVERSIONES ESTIMADAS (MILLONES DE DOLARES)

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TOTAL

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Challenges for Colombian Mining Industry

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 200 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.

Opportunities for Industry

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.

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Additional Information
Map: Coal areas Map: Geological Potential, Precious Minerals and Metals Mining Districts with projects in a production stage Ongoing exploration and production projects: Project: Project: Project: Project: Project: Project: Project: Project: Project: Project: Project:
Source: Ministerio de Minas y Energa 2009

Cerrejn La Loma CMU-Tesoro-Jagua La Francia Cerromatoso El Bagre Lower Marmato Paz del Ro La Y Ro de Oro Upper Marmato

Project: Gramalote Project: Quebradona Project: San Jorge Project: Acand Project: Pantanos Pegadorcito Project: Taraira Project: Mocoa Project: Miraflores Project: La Colosa Project: Angostura (California) Other

Railroad Projects

Geological Potential: Coal

Thermo Metalurgic

Source: Ministerio de Minas y Energa 2009

Geological Potential: Precious Minerals and Metals

Potential Prioritized Zones 1. Nort west of the Department of Antioquia 2. River Cauca Cannon 3. Departments of Nario and Putumayo 4. Colombian East 5. San Lucas Mountain 6. Santander Mountain Range 7. Departments of Tolima and Huila

Minerals Copper, Gold, Molybdenum Gold and basic metals Gold and basic metals Gold Gold Gold Gold and basic metals

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Source: Ministerio de Minas y Energa 2009

Fuente: INGEOMINAS

Mining Districts with projects in a production stage

Mining Districts with projects in a production stage Legend Coal Limestone Emeralds Gold Other Ferronickel Iron Ore Construction Materials Gold, silver, platinum Phosphoric Rock

Main projects in a production stage

Project: Cerrejn Location: Guajira Ownership: 33% BHP Billiton 33% Xtrata 33% Anglo American Mineral: Coal Production/year: 31 MT

Main projects in a production stage

Project: La Loma, El Descanso Location: Cesar Ownership: Drummond Mineral: Coal Production/Year: 21 MT

Main projects in a production stage

Project: CMU-Tesoro-Jagua Location: Cesar Ownership: Glencore Mineral: Coal Production/Year: 4,4 MM Tones Project: Calenturitas Location: Cesar Ownership: Glencore, others Mineral: Coal Production/Year: 3,7 MM Tones

Main projects in a production stage

Project: La Francia Location: Cesar Ownership: CNR Mineral: Coal Production/Year: 1,5 MM Tones

Main projects in a production stage

Project: Cerromatoso Location: Crdoba Ownership: BHP Mineral: Ferronickel Production/Year: 49 Kt

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, Colombia Gold, Medoro Mineral: Gold (Vein) Production/Year: 30.000 oz

Main projects in a production stage

Project: Paz del Ro Location: Boyac Ownership: Votorantim Mineral: Iron Ore Production/Year: 77 Kt

Main exploration projects

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.

Main exploration projects

Project: Ro de Oro Location: Norte de Santander (Tib) Ownership: Geominas and others Mineral: Coal Inferred resource: 320 MM Tones Proven reserves: 60 MM Tones

Main exploration projects

Project: Upper Marmato Location: Caldas (Marmato) Ownership: Colombia Golfields Mineral: Gold (Veins) Inferred resource: 2.5 MM oz Drilling: 32.000 ml

Main exploration projects

Project: Gramalote Location: Antioquia (San Roque) Company: B2Gold-AGA Mineral: Gold (Vein) Inferred resource: 2.5 MM Oz Drilling: 320.000 ml / 450 ml deep.

Main exploration projects

Project: Quebradona Location: Antioquia (Jeric) Ownership: AGA B2Gold Mineral: Gold Inferred resource: 1.5 to 2 MM oz Drilling: 6.000 ml / 300 ml. deep

Main exploration projects

Project: San Jorge Location: Crdoba Ownership: BHP Billiton Mineral: Coal Bidding process of Ingeominas

Main exploration projects

Project: Acand Location: Choc Ownership: Anglo American Colombia Exploration Mineral: polymetallic sulphide Bidding process of Ingeominas

Main exploration projects

Project: Pantanos Pegadorcito Location: Antioquia (FrontinoDabeiba) Ownership: Carbones de la Loma Mineral: polymetallic sulphide Bidding process of Ingeominas

Main exploration projects

Project: Taraira Location: Vaups (Taraira) Ownership: Cosigo-Frontier Mining Corporation Mineral: Gold Bidding process of Ingeominas

Main exploration projects

Project: Mocoa Location: Putumayo Ownership: B2Gold Mineral: Copper and Molybdenum Inferred resource:????? Drilling: 5.000 ml

Main exploration projects

Project: Miraflores Location: Risaralda (Quincha) Ownership: B2Gold Mineral: Gold (Vein) Inferred resource: 0.8 MM oz

Main exploration projects

Project: La Colosa Location: Tolima (Cajamarca) Ownership: Anglo Gold Ashanti Mineral: Gold Inferred resource: > 10 MM oz

Main exploration projects

Project: Angostura (California) Location: Santander Ownership: Greystar Resources Mineral: Gold (open pit) M&I Resource: 7 MM oz Inferred resource: 6 MM oz. Drilling: > 200.000 ml

Other companies with presence in Colombia

Rio Tinto (with some joint ventures) Vale Barrick MPX Mitsui Several junior companies

Railroad Projects
SANTA MARTA

245 KM

Atlantic Concession Central Railroad System Pacific Concession

CHIRIGUANA

1045 KM

Carare
LA VIZCAINA

ENVIGADO BOLOMBOLO

CABAAS

PUERTO BERRIO BARBOSA PTO SALGAR BELENCITO LA ISLA LA CARO

Multi purpose Railroad Bogot Valle Altiplano

498 KM

LA FELISA LA DORADA LA TEBAIDA

FACA BOGOTA

BUENAVENTURA CALI

PALMIRA YUMBO PALMIRA

BUENOS AIRES

VILLA VIEJA