Colombia Mining Projects Report 2010
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Colombia Mining Projects Report 2010 Projected Investment on Mine Development and Expansion Projects in Colombia; 2010 to 2020 A market research study on behalf of The Australian Trade Commission - Austrade – And Australian Mining Equipment and Services Export Association - Austmine – By Asomineros Chamber of National Business Association of Colombia - ANDI - Bogota, D. C. April 2010 Project Investment on Mine Development and Expansion Projects in Colombia 2010 - 2020 I. TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................ 1 1.1. Background ................................................................................................ 2 2. COLOMBIAN MINING SECTOR POLICIES .................................................. 4 3. THE COLOMBIAN MINING SCENE IN 2009 ................................................. 6 3.1 Coal ............................................................................................................... 8 3.2 Nickel ........................................................................................................... 11 3.3 Precious Metals ........................................................................................... 12 4. ELECTRICITY GENERATION PROJECTS ................................................. 14 5. DEVELOPMENT AND EXPANSION PROJECTS BY COMPANY .............. 15 5.1. Carbones del Cerrejón LLC. ....................................................................... 19 5.2. Cerro Matoso .............................................................................................. 21 5.3. Drummond Ltd. ........................................................................................... 22 5.4. Prodeco ...................................................................................................... 24 5.5. Mineros S. A. .............................................................................................. 26 5.6. Vale ............................................................................................................. 27 5.7. Grupo EBX .................................................................................................. 29 5.8. Carbones San Fernando ............................................................................. 31 5.9. Carbones del Norte del Cesar – Norcarbón S. A. ....................................... 32 5.10. Minera El Roble –Miner S. A. .................................................................... 33 5.11. Carbones de Los Andes –Carboandes S. A. ............................................ 34 5.12. Greystar Resources Ltd. Sucursal Colombia ............................................ 35 5.13. Anglogold Ashanti ..................................................................................... 37 5.14. B2Gold Corp. ........................................................................................... 39 5.15. Continental Gold Ltd. ................................................................................ 41 5.16. Grupo de Bullet S. A. Inversiones Mineras ............................................... 42 5.17. Cosigo Resources. .................................................................................... 43 5.18. Goldman Sachs Group ............................................................................. 44 5.19. Coalcorp Mining Inc. ................................................................................. 46 5.20. Galway Resources Ltd. ............................................................................. 47 5.21. Medoro Resources Ltd. ............................................................................. 49 5.22. Colombian Mines Corp. ............................................................................ 51 5.23. Anglo American Plc ................................................................................... 53 5.24. Cordillera Exploraciones ........................................................................... 54 5.25. Inversiones Argos ..................................................................................... 55 5.26. Holcim Ltd. ................................................................................................ 56 5.27. Ventana Gold Corp. .................................................................................. 57 5.28. Votorantim Siderurgia ............................................................................... 58 5.29. Yamana Gold ............................................................................................ 60 5.30. Miranda Gold Corp. ................................................................................... 61 ii Project Investment on Mine Development and Expansion Projects in Colombia 2010 - 2020 5.31. Orofino Gold Corp. .................................................................................... 62 5.32. Oroandes Resource Corp. ........................................................................ 63 5.33. Bandera Gold ............................................................................................ 64 5.34. Bearing Gold Corp. ................................................................................... 65 5.35. Bellhaven Copper & Gold ......................................................................... 66 5.36. El Zancudo Mining .................................................................................... 67 5.37. Cadan Resources Corp. ........................................................................... 68 5.38. Gemini Exploration .................................................................................... 69 5.39. Caerus Resources Corp. .......................................................................... 70 II. LIST OF FIGURES Figure Page 1. Quarterly Gross Domestic Product 2003 ± 2009 ............................................ 6 2. Value of Colombian oil and mining exports ..................................................... 7 3. Distribution of the value of Colombian Mining exports .................................... 7 4. Quarterly Foreign Direct Investment FDI - 2000 ± 2009 ................................. 8 5. Production of Colombian coal 1998-2009 ....................................................... 9 6. National Nickel Production and International Nickel prices ........................... 11 7. Colombian production of precious metals ..................................................... 12 8. Colombian Gold Exports and international gold prices ................................. 13 9. Development and Expansion projects in Colombia ....................................... 17 10. Location of development and expansion projects ....................................... 18 III. LIST OF TABLES Table Page 1. Historical mining production of Colombia 2000-2009 ....................................... 2 2. Colombian Coal production by departments (2008 – 2009) ........................... 10 3. Electricity generation expansion projects ....................................................... 14 4. Projection of mining investments for the 2010 through 2020 period. ............. 16 iii Project Investment on Mine Development and Expansion Projects in Colombia 2010 - 2020 1. INTRODUCTION This study has been performed under the coordination of the ASOMINEROS Chamber of ANDI and has had participation by the IMCPortal Ltda. Company. The objective of the study is to provide information on existing mining projects and those that are planned in the forthcoming decade in Colombia, in order to provide to Australian Mining Equipment and Services Export Association – AUSTMINE – with an outlook of the future opportunities that the Colombian mining sector offers. The scope of the study covers detailed known and disclosed mining expansion projects for existing mine operations, estimated future developments for mines that are currently in production, and new potential mining developments arising from many exploration projects that are being performed at this time in the country. The study spans a 10-year time frame, from 2010 through 2020. A brief description of the Colombian mining sector is presented, including background, recent mining performance, composition of mining in Colombia, historic figures for Production, Exports and Direct Foreign Investment, and highlights the main producers of coal, nickel, gold, and other minerals. Government mining goals for the next decade are also included. Moreover, a detailed description is presented for each project, including contact information, available technical and commercial data, as well as a description of services, plant and equipment opportunities, for the benefit of AUSTMINE members. There was a certain reticence that was observed on the part of several companies with regard to making public the progress in their projects and the investments required, which made it somewhat difficult to obtain part of the information. Consequently, in addition to the official information provided directly by some companies, further information was obtained in individual consultation with persons that are close to the companies, press reports endorsed by the companies, and in the companies’ pages on the Internet. On account of the above, it was not possible to obtain complete information on the needs for goods and services for each of the projects. Based on the information collected, we could establish that for this decade, there are at least 12 expansion projects, 5 projects with defined feasibility, and 38 in the pre-feasibility