Download MINING SECTOR IN COLOMBIA -MOVING FORWARD-

MINING SECTOR IN
COLOMBIA
-MOVING FORWARDMs. Carolina Rojas
Vice President of Promotion and Development.
National Mining Agency of Colombia
Colombia at a glance
GDP 2014: +4.6%
Average growth in the ten years +4,8%
CONTROLLED INFLATION
2014: 3.66%
INVESTMENT GRADE
RATING
BBB
Stable
BBB
Stable
Baa2
Positive
Below target inflation
FDI 2014: US$16 Billon
UNEMPLOYMENT RATE
2014: 9.1%
Unemployment rate 2013: 9.6%.
POVERTY INDICATOR 2014: 28,5%
POVERTY INDICATOR 2009: 40,3%
Source: DANE, Central Bank, S&P Ratings; Revista Dinero, Doing Business 2015
DOING BUSINESS
RANKING
2015 RANK : 34
(+19 with respect to
2014)
Macroeconomic stability and strong
economic performance in the long term
GDP Growth, Inflation and unemployment Rate 2002 –
2018p (%)
Unemployment rate
GDP
Inflation
15.6
14.1 13.7
11.8 12.0
6.7
7.0
2.5
5.3
6.5
5.5
3.9
11.2 11.3
12.0 11.8
6.9 7.7
4.9
4.0
3.5
4.0
2003
2004
2005
2006
9.1
4.9
4.6
2.0
4.5
3.7
2007
2008
P: Projected
Source: DANE; Banco de la República;
Forecasted data source: FMI, April 2015
2009
3,7
3.7
2.4
1.7
2002
9.6
9.0
8.9
8.9
8.9
3.4
3.7
4.0
4.2
3.6
3.2
3.0
3.0
6.6
4.7
5.7
10.8 10.4
2010
2011
2012
1.9
2013
2014 2015p 2016p 2017p 2018p
Mining is vital for Colombia
Mining represents
more than 2,1% of
the country´s GDP
An independent
survey showed that
73% of those
surveyed in mining
regions believe that
mining is positive
for Colombia
Source: Brújula Minera 2015
1,200 million dollars
In 2013 the mining industry
contributed in taxes and
royalties resources to pay:
Coal exports
represent 15% of
total exports
Source: DANE, ACM , ANM.
1 million people
benefit from
mining industry
employment
Mining sector: has moved forward
2004
2013
Weak Institutions
ANM, ANLA, Environment Ministry,
Mining Viceministry
Stronger Regulation
Poor Regulation
PND, RUCOM Decree, Formalization,
Strict environmental licence regulation
Mining and energy contribution
2.6 billion dollars
Mining and energy contribution
16 billion dollars
Royalties
1.1 billion dollars
Royalties
5.4 billion dollars
Source: DANE, DIAN, Minhacienda, Ministry of Mines and Energy calculations.
Mining sector has moved forward
Coal, Metalic Minerals and Non-metalic Minerals' GDP
Annual Production of Coal and Gold
100
2,5
6
1,9
4
3
1,6
80
70
70
60
60
50
57
1
1,0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Nonmetallic Minerals GDP
Metallic Minerals GDP
Coal GDP
Share of Mining in Colombian GDP (Right Axis)
Source: Central Bank and ANM
50
40
40
30
30
20
20
10
10
0
0
2
1,3
90
80
%
USD billions
5
Millon Tons Coal
2,2
2,1
88,9
90
Tons Gold
7
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Coal
Gold
Colombia is advancing towards learning about
its true geological potential
 We invested US$69.5 million to bring quality and
updated information to the search for
underground resources
 Studies for cartography and aero geophysics as
well as geochemical recognition and exploration
are being undertaken
 Geological cartography - 2010: 48.31% / 2014:
65.78%
 Geophysics - 2010: 4% / 2014: 44% (surpasses
strategic mining areas)
 Geochemistry in the Andean region (Strategic
Mining Area)
Source: Map SGC
Colombia: Unexplored territory
5%
Colombian territory
dedicated to Mining
2,3%
Exploration
1,6%
Construction and
Assembly
114 million Ha
1,1%
Exploitation
Mining Concession Contracts
distribution
Contracts per mineral
Contracts per stage
LIMESTONE
5%
INDUSTRIAL
MINERALS
4%
METALES
7%
COAL
16%
BUILDING
MATERIALS
47%
PRECIOUS
METALS
17%
TOTAL MINING TITLES: 9627
* Source: ANM, April 2015
PRECIOUS
STONES
3%
Three ways to access to a Colombian mining
concession
Staking (first came first served)
•
•
•
•
Any mineral
Any free area 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
Negotiating an existing title
• Mineral rights can be freely
transferred between investors
Duration of the Concession Contract
Exploration fee
Royalties
Prior Consultation
process
The National Mining
Agency
The Colombian Mining
Authority
National Mining Agency main functions
Management of mineral resources for and on
behalf of the state.
Hold, manage and track concession and mining
rights for exploration and development of
minerals.
Managing the national mining registry.
Article. 4
Calculate, collect, manage and transfer royalties
and compensation.
Promote and encourage development of mining.
IN MINING APPLICATIONS…
2012 - 2013
97% of the
total mining
applications
were solved
588 still
under
assessment
In the meantime…
4.271 New
applications
since the reopening in
2012.
IN INSPECTIONS
WIDESPREAD INSPECTION
TRANSPARENCY AND CONSISTENCY
Unique Register of Mineral Traders - RUCOM-
 Launched January 2015
 2,219 Certificates issued
 Minerals traded since its
opening:
• 14,8 tons of Gold
• 2,7 tons of Silver
• 211.069 gr of Platinum
Source: NMA , 27/04 /2015
www.anm.gov.co/?q=Rucom
Thank you!!!
We are more than keen to
work with you