PROMOTING COMPETITIVE AND RESPONSIBLE MINING IN COLOMBIA

Prospectors and Developers Association of Canada Convention Toronto, March 2014

PROGRESS

ANM MILESTONES

*

* RUCOM: Unique Register of Mineral Traders

ANM

NEW REGISTRATION INFORMATION SYSTEM • Re-opening of applications system.

3,916 new requests between July 2013 and February 2014

• Clear rules for entitlement. Standardized and transparent process.

• Assistance throughout the process

• Guaranties for the mining user. • First come first served • Support of control entities

World Bank about re-opening of the application system:

"Congratulations on the success of the inaugural session. Processing 2,188 requests in a single day is definitely (at least to my knowledge) a new world record. And if everything

went well, without fail and without incident, it is to be justifiably proud. "

TRANSPARENT MINING INFORMATION

• Procedures via web - Redesign of declaration, payment of royalties and surface rent into electronic forms

• Mining Management Integrated System: Project awarded to Canadian-

Mexican consortium Expected completion 2015

COMPREHENSIVE AUDIT 30

312

15.062

8%

53%

10.161

COMPREHENSIVE AUDIT Evidence of good mining practices

Cable

Improving roads

Ecological Activities

Cultural activities

Nursery

GREATER TRANSPARENCY AND CONTROL OF MINERAL COMMERCIALIZATION IN COLOMBIA

Unique Register of Mineral Traders - RUCOM

Online platform in operation since 12th of January, 2014

3.000

Requests for register

100%

Digitalized

MODERNIZING RESCUE EQUIPMENTS: A 30 YEAR LEAP

• Acquisition of latest technology of self-contained breathing equipment (265 units), renewing existing ones after 30 years of use

• Purchase of 5 mobile rescue units with a 6 tons capacity

INCREASED REGIONAL PRESENCE OF ANM BY 40%

MINING FACTS

37% OF EXISTING MINING TITLES ARE IN EXPLORATION STAGE

* February 20

Entitlement area of 5.3 M Ha 37% in exploration: 3,619 24% in assembly and construction: 2,349 39% in production: 3,737

ENTITLEMENT FOR PRECIOUS METALS ACCOUNTS FOR HALF OF THE TITLE UNIVERSE

11 STRATEGIC MINERALS: POTENTIAL OF AN UNEXPLORED TERRITORY

Source: ANM

Gold - 19.9 Mll Ha.

Copper - 12 Mll Ha.

Platinum - 1.9 Mll Ha.

Iron Ore - 1.8 Mll Ha.

Coal - 11.4 Mll Ha.

Coltan - 2.4 Mll Ha.

Potassium - 1.1 Mll Ha.

Magnesium - 0.5 Mll Ha.

Nickel - 0.5 Mll Ha.

Phosphate - 3.5 Mll Ha.

Uranium - 5.2 Mll Ha.

­

META

VICHADA

AMAZONAS

CAQUETA

GUAINIA

VAUPES

CHOCO

ANTIOQUIA

GUAVIARE

CAUCA

NARIÑO

CASANARE

CESAR

TOLIMA

HUILA

BOLIVAR

ARAUCA

BOYACA

SANTANDER

CORDOBA

PUTUMAYO

MAGDALENA

LA GUAJIRA

SUCRE

CUNDINAMARCA

VALLE DEL CAUCA

NORTE DE SANTANDER

CALDAS

ATLANTICO

RISARALDA

QUINDIO

SANTA FE DE BOGOTA D. C.

PRODUCTION 2013: 85,5 Mton

• Titles: 1,644 (552 in exp. and 559 in

prod.)

• 95% Thermal coal , 5% Metallurgic coal

• 90% Open Pit, 5% Underground mining PRODUCTION BY DEPARTAMENTS

• 92% in La Guajira and Cesar

• 8% in Cundinamarca, Boyacá, Norte de Santander and others (Córdoba, Antioquia,

Casanare, Cauca, Santander, y Valle del Cauca which producen less than 1 Mill Ton)

COAL

GOLD

PRODUCTION 2013: 55.8 Ton

• Titles: 2,036

• 1,162 in exploration and 349 in

production PRODUCTION BY DEPARTAMENTS

• 47% in Antioquia and 27% in Chocó

• 8% in Cauca and 6% in Nariño

• 4% in Bolívar and 3% in Caldas

• 5% Rest of the country

COPPER

PRODUCTION 2013: 4,000 Ton

• Titles: 744 • 539 in exploration and 11 in production High mineral potential discovered since the 1970s

Production projects: • “El Roble” Mine (Antioquia) Exploration projects: • Mocoa (Putumayo) • Santa Helena (Antoquia) • Comitá (Chocó) • Ramos-Laverde (Nariño)

GOING FORWARD

ANM’S VISION FOR THE MINIG SECTOR

Responsible mining through a virtous triangle.

SOCIAL CHALLENGES FOR MINING ACTIVITY

CONTRIBUTION OF THE ANM

Good practices

Within the next 5 years

THE PERCEPTION ABOUT MINING IS CHANGING

• Within the next years, 63% of mining companies intend to expand operations

• 66% considers mining to be positive for the country

• 78% believe that “well done” mining generates development in the regions

• 63% believe that it is possible to have a socially responsible mining activity

Source: Centro Nacional de Consultoría – Brújula Minera, 2014

Reduce operations Stay Expand operations

MINING IS A KEY DRIVER FOR THE 4G INFRASTRUCTURE PROJECT

Between 2015 y 2020, a new boost in demand for building materials

939 mill Ton of steel

11 mill. M3 of asphalt

12 mill. M3 of concrete

3 mill. Ml of drain pipe

SUPPORTING MINING FEASIBILITY

• High level support of strategic projects • CONPES PINES (3,762) • Timely and effective

management in order to make possible the future of Induprimas – Peldar and Sumicol – Corona

• Implementation of

public works in roadway corridors, ports infrastructure, rivers and railways

• Supporting title owners in implementing social clauses

THE GOVERMENT IS IMPROVING THE PROCESS IN PRIOR CONSULTATION

Improvement in prior consultation with the indigenous and Afro-descendant peoples

Presidential Directive to implement a guide

Inter-institutional Coordination Protocol (Decree 2613/2013)

Creation of inter-institutional committees

Simplification of process to obtain the certificate of presence of indigenous and Afro-descendant peoples (The Ministry of Interior)

Expediting legalization of prior consultation. Now with The Ministry of Interior (before, with ANLA)

In process, single window tool (“ventanilla única”) to follow environmental and social stages in projects.

STRATEGIC MINING AREAS

• Collaborative effort by several entities (Ministry of Mines, Geological Service, UPME, ANM)

• Support of World Bank in constructing tender methodology

• Data collection by the Colombian Geological Service

• Data diffusion policy

• Tender procedures (preparing information, launch and opening, qualification, award)