Colombian Minning Statistical Yearbook

COLOMBIAN MINNING STATISTIC AL YEARBOOK
MINISTERIO DE MINAS Y ENERGA (Ministry of Mining and Energy) Minister Hernn Martnez T orres Vice-minister Silvana Giaimo Chvez Mining director MME Beatriz Duque Montoya
Delegated Entities: INGEOMINAS General Director Mario Ballesteros Meja
UPME General Director Ricardo Rodrguez Yee
Antioquia Departmental Government Governor Luis Alfredo Ramos Botero
Bolvar Departmental Government Govenor Joaco Berrio Villareal
Boyac Departmental Government Governor Jos Rozo Milln
Caldas Departmental Government Governor Mario Aristizbal Muoz
Cesar Departmental Government Governor Cristian Moreno Panezo
Norte de Santander Departmental Government Governor William Villamizar Laguado
Work team Vladimir Chamat Villa (Ministry of Mining and Energy) Anllela Marsela Castillo Rey (Ministry of Mining and Energy)
Jorge Fernando Forero Castaeda (UPME)
2009
Presentation
he Ministry of Mining and Energy is proud to present the first Colombian Mining Statistical Yearbook which contains the sector statistics from different views, highlighting the importance of the communication of the information
with quality and seriousness, through the creation of a document which includes the socio-economical aspects of the national mining industry and an analytical description of the various activities that shape it.
The Mining Statistical Yearbook becomes an instrument of communication and promotion in the national mining sector, containing the most relevant information of the sector in the last five years, that will allow the growth and improvement of the Colombian mining compared with other sectors and other Latin American countries.
Also this document allows different readers to access first hand information, that will permit more in deep analysis, consultations, researches, projections and studies that will strengthen the grow and development of the Colombian mining sector.
Last but not least, my most sincere acknowledgments and thanks to all the entities which provided us with the information and help facilitating the production of the yearbook, and with the hope that from now and each year we continue to publish and improve this yearbook for the benefit of the Colombian mining.
HERNN MARTNEZ TORRES
Acronyms
ANH: Agencia Nacional de Hidrocarburos / National Hydrocarbons Agency
BANREP:
Banco de la Repblica / National Central Reserve Bank
CEPAL:
Comisin Econmica para Amrica Latina y el Caribe / ECLAC Economic Commission for Latin America and the Caribbean
DANE:
Departamento Administrativo Nacional de Estadstica / National Statistics Department
DIAN:
Direccin de Impuestos y Aduanas Nacionales de Colombia / National T axes and Customs Agency
DNP:
Departamento Nacional de Planeacin Nacional / National Planning Department
ICPC:
Instituto Colombiano de Productores de Cemento / Colombian Institute of Cement Producers
IFI:
Instituto de Fomento Industrial / National Institute for the Industrial Development
INDUMIL:
Industria Militar / Military Industry
INGEOMINAS:
Instituto Colombiano de Geologa y Minera / National Geological and Mining Institute
L F:
London Fix
LME:
London Metal Exchange
UPME:
Unidad de Planeacin Minero Energtica / Mining and Energy Planning Unit
USGS:
United States Geological Survey
INCO:
Instituto Nacional de Concesiones / National Institute of Concessions
TABLE OF CONTENTS
INTRODUCCIN
1.
NATIONAL MACROECONOMIC NATIONAL INDEX
11
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15.
GDP POPULATION GDP PER CAPITA EXPORTS IMPORTS TRADE BALANCE FOREIGN DIRECT INVESTMENT NATIONAL INVESTMENT INFLATION MARKET EXCHANGE RATE EMPLOYMENT AND UNEMPLOYMENT RATE FISCAL DEFICIT AS A % OF GDP EXTERNAL DEBT INTERNATIONAL RESERVES ROYALTIES
11 12 13 13 15 16 17 18 19 20 20 21 22 24 25
2.
PAMERICA MINING OUTLOOK
26
2.1. 2.2. 2.3. 2.3.1. 2.3.2. 2.3.3. 2.3.4.
TOTAL GDP MINING GDP MINING PRODUCTION BY MINERAL Coal Gold Silver Nickel
26 27 27 27 28 29 30
T ABLE OF CONTENTS
2.3.5. 2.3.6. 2.3.7. 2.3.8. 2.3.9.
Copper Steel Bauxite Zinc Iron
30 31 32 32 33 34 34 35
2.3.10. Tin 2.4. 2.5. FOREIGN INVESTMENT IN MINING MINERAL PRICES
3.
COLOMBIAN MINING
38
3.1. 3.1.1. 3.1.2. 3.1.3.
MINING MACROECONOMIC INDICATORS Mining GDP Mining Exports Foreign Direct Investment in Mining total and by mineral)
38 38 39
41 41 42 43 43 44 45 46 48 50 52 53 54 55 56 58 58 60 60 66 68 69 70 70
3.2. 3.2.1. 3.2.2. 3.3. 3.3.1. 3.3.2. 3.3.3. 3.3.4. 3.3.5. 3.3.6. 3.3.7. 3.3.8. 3.3.9.
GEOLOGIC INFORMATION Exploration Investment in Exploration MINING MANAGEMENT Mining Applications Mining Titles Contracted Area Main Projects Special Reserve Areas Indigenous People Mining Zones Afro-Colombian Communities Mining Zones Control Visits Explosive Consumption
3.3.10. Mining Districts 3.4. 3.4.1. 3.5. 3.5.1. 3.5.2. 3.5.3. 3.5.4. 3.6. 3.6.1. MINING PRODUCTION Coal Production MINING CONTRIBUTION Royalties Mining Fund Projects (MFP) Employment Generation Base Price for Royalty Liquidation SECURITY IN MINING Information on Security and Hygiene
T ABLE OF CONTENTS
3.6.2. 3.6.3. 3.7. 3.7.1. 3.7.2. 3.7.3.
Information on Mining Emergencies Investments in Security and Hygiene TRANSPORTATION INFRASTUCTURE Railroad Ports Roads
70 70 71 71 71 72
4.
COLOMBIAN MINING IN 2009 (I SEMESTER OF 2009)
73
4.1. 4.2. 4.3. 4.4.
MINING GDP AND MINING PRODUCTION BEHAVIOUR FOREIGN DIRECT INVESTMENT ANALYSIS BEHAVIOUR OF THE MINING ROYALTIES PRICES OF THE MINERALS
73 74 75 76
Introduction
uring the last years the mining contribution to the Colombian Economy has been progressive, due to the increase of the coal mining since the 80s mainly in the Cesar and Guajira departments. Also, other traditional minerals focus on exportation as the ferronickel in Cerromatoso and non-traditional minerals such
as gold and emeralds amongst others have contributed to the economy. Such contribution can be seen through the analysis of the mining GDP as a promoter of the growth in the national GDP and its correlation with the increase of the Foreign Direct Investment in our country.
In the period comprehended between the years 2003 and 2009 (I semester) the Colombian mining presented the following advances closely related with the vision stated in the National Mining Development Plan (Plan Nacional de Desarrollo Minero) which established in the year 2019 the mining industry in Colombia will be one of the most relevant in Latin America and it will have significantly increase its participation in the national economy
The relation between the Mining GDP and the National GDP presented an annual participation average of 1.54% between the years 2003 and 2009 (I semester). This relationship has been stable because of the increasing value of the Coal GDP in the Mining GDP .
The coal production shows an annual average variation of 8.74% which reflects an increase, during the period 2005 -2006, of 10.9% of the production. Between the years 2003 and 2007 the coal production grew in 39.72% from 50 million tons to almost 70 million tons.
Other precious metals such as gold, silver and platinum showed an overall production of 156.8 tons, distributed in 115.2 tons of gold, 36 tons of silver and 5.6 tons of platinum. The boom in the sector has been related with the positive behaviour of the international prices.
The value of the mining sector exports between the year 200 and August of 2009 augment to 39 million dollars FOB.
The coal exports increased in 633.3 million tons during the years 2003 and 2009 (I semester), which represented a raise of 70.9%. The export sales of traditional goods such as coal
and ferronickel showed favorable international prices that motivated the large insertion of both products in the international market.
The traditional mining exports (coal and ferronickel) represented a 32.17% of the total value of the Mining sector exports (including hydrocarbons) during the reference period 2000 to June 2009, with a value of 28.261 million dollars FOB.
The Foreign Direct Investment from the year 2000 to the year 2009 (II semester) is valued in US$ 472.831 million and is expected that it boosts to US$ 85.331 million in the year 2010.
Within the sector policies three clear strategies are to be highlighted, which focus on:
The promotion of the Pas Minero (the mining potential of the country): this policy procures that the Estate promotes the Pas Minero in the international arena.
The improvement of the Productivity and Competitiveness: this requires a strategic plan, which assures in the long run the contribution of the mining sector to the sustainable development of the country and its regions, strengthening the economic and social grow of the country. Within this frame the Modelo de Gestin de Distritos Mineros (Policy model for the mining districts) has been developed, which will become a referent for the mining activities in the country and with clear goals of clustering all the mining production and competition variables that are presented in the country. Another crucial aspect of the strategy is to articulate the mining activities with both the Plan de Ordenamiento T erritorial (National Land Management Plan) and the regional development plans of each one of the different municipalities that shape the mining regions.
Management of the mining resources: the optimization of the supporting processes related to the mining activities, which are those associated with the management of the mining resources. After a long time of the enactment of the law 685 of 2001, which is the current mining code, the Ministry of Mining and Energy saw convenient and necessary to promote a reform to the law, with the objective of boosting the mining activity in the country. Currently the law project 010 of 2007 is waiting for the presidential approval which will modify the law 685 of 2001.
The reason why the Colombian mining has establish itself worldwide starts with the commitment of the institutions lead by the Ministry of Mines and Energy, which seeks to attract foreign investment through a variety of strategies which are implemented by the
Mining Direction, of the Ministry of Mining and Energy, which is responsible for the development of the Colombian Mining Statistics Yearbook, an instrument for the promotion, communication and validation of the national mining industry sector performance for which this documents is presented with the support of different sources of information.
1.
1.1.
NATIONAL MACROECONOMIC NATIONAL INDEX

GDP
Table. GDP PER SECTOR In constant Millions of COP for the year 2000
Source: DANE
Figure. GDP PER SECTOR In constant Millions of Pesos for the year 2000
Source: DANE
The behaviour of the internal GDP for the period between 2004 and 2008 presented an annual average variation of 5.5%. The increase of the production value was associated with the grow of some of the production items like construction (specially civil works), manufacturing industry which was responsible of pulling the growth together with the commercial trading, transportation and mining and quarry operation amongst others.
The national GDP increased its price constant value since the year 2000, from 225 COP billion in 2004 to 280 COP billion in 2008. The annual variations showed a sustainable growth during the stated period, presenting in 2008 a decline of 1.9% in the manufacturing sector and a raise of 7.3% in the mining and quarry sector .
1.2.
POPULATION Table. POPULATION In thousands of inhabitants
Source: DANE. Calculation: UPME
Figure. POPULATON In percentage of variation
Fuente: DANE. Clculos: UPME
The growth rate of the Colombian population reflects a decrease in its total annual variation. In the period of 2004 to 2005 the rate presented a growth of 1.23% which dropped off to 1.19% for the 2007- 2008 period. During the 80s the growth of the population was around 2%, the value of the indicator reduce according to the characteristics and
changes in the population variables around 1.2% for the period of 2004-2008.
1.3.
GDP PER CAPITA Table. GDP PER CAPITA In constant Millions of COP for the year 2000
Source: DANE. Calculation: UPME.
Figure. GDP PER CAPITA In constant Millions of COP for the year 2000
Source: DANE. Calculation: UPME
The GDP per capita has increase in a substantial way during the period, from 5 COP millions annually to 6.2 COP millions annually for the period of 2008. This value is a reflection of the growth of the overall GDP in 5.5% average, with only a growth in the population of 1.2% in average for the stated period. The GDP of the departments in constant prices of 2000 shows that regions such as Bogot, Antioqua, Santander, Cundinamarca, Meta, Valle, Casanare and San Andrs have the highest figures shown in the indicator based on the numbers provided by the DANE.
1.4.
EXPORTS Table. Exports by sector In millions of dollars FOB
Fuente: DANE
Figure. Export by Sector In millions of dollars FOB
Souce: DANE
Both the international trade dynamic and the favorable international prices were key factors in the good behaviour shown by our country exports. The value of the exports generated by Colombia for the period 2004-2008 is 129.987 million dollars. The annual variations indicate an increase for the stated period with an average of 23.5% showing the biggest increase during the years 2004 and 2005 for which the industrial and mining sector weighted more in the indicator.
The overall exports showed a surplus due to the favorable exchange rate (favorable international prices for our basic products) and the strong demand of our commercial partners like the United States and Venezuela. The traditional exports grew in the period in 27.6% average, those were mainly composed of petroleum and its derivates, coal and ferronickel that were favored by historically high international prices and also coffee.
The non-traditional exports showed also high figures with a grow average of 20% made up by the agricultural /livestock sector, industrial sector (apparel, food, beverages and chemical industry among others and within the mining sector also in the non monetary gold and emeralds items.
1.5.
IMPORTS
Table. Imports by type of goods Figures in millions of dollars CIF
Source: DIAN and Banco de la Repblica. (1) Figures include petroleum derivates and coal.
Figure. Export by Types of Goods Figures in millions of dollars CIF
Source: DIAN and Banco de la Repblica.
The dynamics of the imports was determined by the lofty investment and the immense infrastructure projects developed in the country. The durable consumption goods increased in average during the year 2008 in a 4.8% while the non-durable increased in 20.8%.
Both the intermediate and the raw materials increased compared with 2007. The imports of fuel and lubricants, agricultural raw materials and the industrial sector increased approximately in 25% compared with 2007, from 14.1 to 17.7 millions of dollars CIF . For the imports of capital goods the increase was of 20.65 compared with 2007, presenting a figure for the item of 14.3 million dollars CIF for 2008.
1.6.
TRADE BALANCE Table. Trade Balance In Millions of Dollars FOB
Source: DIAN Calculation: DANE
Figure. Trade balance In Millions of Dollars FOB
Source: DIAN Calculation: DANE
With and export of goods valued in 37.626 million dollars and an import value for 37.155 million dollars the result of the trade balance for the year 2008 was an estimate surplus of 470 million dollars, reflecting that the payment balance improved compared with previous years where it presented a deficit of 824 and 124 million dollars FOB. This reflects an augment in the export sector which compensated for the imports and determined a positive trade flow for the year 2008.
Also the trade balance by economic groups presented a surplus for 2008 with the Asociacin Latinoamericana de Integracin, la Comunidad Andina and the G-3. The groups that presented a deficit were the European Union and the MERCOSUR
The trade balance with our trade partners presented a surplus for 2008 with the United States of 3.312 million dollars and with Venezuela of 4.915 million dollars FOB. With other partners like Peru, Chile and Ecuador the balance was positive for 2008. While with countries such as Mexico, Brazil and China the trade balance presented a deficit.
1.7.
FOREIGN DIRECT INVESTMENT
Table. Foreign Direct Investment by Sector In millions of dollars
Source: Banco de la Repblica
Figure. Foreign Direct Investment by Sector In millions of dollars
The Foreign Direct Investment was 10.564 million dollars for 2008 with an estimated increase of 1.514 million dollars compared with 2007, growing in 16.7%. The main focus of the investment was the petroleum sector with 34% and the mining and quarry sector
with a 20%. In 2008 the F .D.I in petroleum and mining and quarry ascended to 5.685 million dollars which was the 53.8% of the foreign direct investment in the country.
1.8.
NATIONAL INVESTMENT
Table. National Direct Investment by Sector In Millions of Dollars
Figure. Colombian Direct Investment by Sector In millions of dollars
The Colombian Direct Investment was 2.157 million dollars in 2008 with an estimate increased of 1.245 million dollars compared with 2007, a raise of 136%. The main destination of this investment was related with the mining and quarry sector.
1.9.
INFLATION
Table. Annual Inflation Variation In percentage
Source: Banco de la Repblica, annual variation, calculation UPME
Graphic. Annual Inflation Variation In Percentage
Source: Banco de la Repblica, annual variation, calculation UPME
The consumer annual inflation in the year 2008 ended in 7.6% which was affected by transitory demand shocks, as was the case of the food sector . In our country around 74% of the inflation acceleration in 2007 was associated with the CPI of the food sector .
The raise in the food prices obeyed in first place to the high international prices of products like oils, cereals and sugar which are an essential part of the consumer basket. This phenomenon increased in the international prices of fuel, the raise of some emergent economies such as China and India and even the global warming helped in the increase of the indicator . In second place some transitory environmental phenomena and in third place the increase of both the internal demand and the internal offer.
1.10.
1MARKET EXCHANGE RATE
Table. Market Exchange Rate In COP
Source: Banco de la Repblica, calculation UPME
Figure. Market Exchange Rate In COP
2008 suffered from high revaluation pressures which were a result of the massive capital entry as a FDI mainly focus in the petroleum and mining sector. The exchange rate since 2007 has presented a revaluation dynamic which in a large part can be explain by the entry of capitals from the sale of state companies, the FDI and other external capital flows related with the investments in portfolios.
1.11.
EMPLOYMENT AND UNEMPLOYMENT RATE
Table. Simple Average Employment and Unemployment Rate In Percentage
Source: DANE, calculation UPME
Figure. Simple Average Employment and Unemployment Rate Period 2004-2008 In Percentage
1.12.
FISCAL DEFICIT AS A % OF GDP
Table. Fiscal Deficit In Percentage
Sources: Banco de la Repblica, calculation UPME
Figure. Fiscal Deficit In Percentage
For 2008 the fiscal deficit goal for the overall public sector was established in 1.4% of the GDP . This goal assumes a deficit of 3.3% of the GDP for the finances of the Central Government that will be partially adjusted by the 1.7% of the GDP surplus of the de-centralized sector . The expenses of a financial re-structuring are estimated in 0.3% of the GDP and the numbers of the Banco de la Republica and Fogafin will show a surplus of 0.4% and 0.1% of the GDP respectively. As a result an augment of the public deficit is expected based on both cyclical and non-cyclical factors such as an ascending cycle of the pension payment, the collection of the capital taxes and the liquidation of the ISS amongst others.
1.13.
EXTERNAL DEBT Table. Internal and External Debt Figure in Thousand of Millions COP
Figure. INTERNAL AND EXTERNAL DEBT Deuda Interna y Externa In Thousand of Millions COP
The structure of the Colombian debt is:
The DNFPS is compound of:
Security De-centralized entities)
The DFPS is compound of:
COLDEX, FEN, FINDETER, FOGAFIN)
For the year 1995 the external debt represented a 12.5% of the GDP and the internal debt was 10.3%. Since 1997 the compounding of the debt has change, the internal debt has gained more weight in the overall national debt compounding.
The national debt was $159.660.3 thousand of millions COP in 2008. The value of the medium term debt balance and the long term balance was $105.026 thousand million COP and the balance of the external medium term and long term debts was $54.634.3 thousand of millions COP which is the 65.8% and the 34.2% of the total national debt balance of the central government for 2008.
1.14.
INTERNATIONAL RESERVES
Table. International Reserves In Millions of Dollars
Figure. International Reserves In Millions of Dollars
The net balance of the international reserves for 2008 was US$ 24.030 million considering that from the 1st of October , liabilities as the short term interest over special rights and liabilities for administration and custody of external funds were included in the calculation. As a result the balance of the international reserves is reduced compared with the gross balance and its adjusted to the established methodology of the IMF .
The Banco de la Repblica is the one designated to manage the performance and structure the reserves, with a clear criteria focus on the security management, the performance and the liquidity. In accordance to this criteria the reserves are invested in financial assets with high liquidity and low risk, which are also characterized by a large secondary market.
1.15.
ROYALTIES
Table. Royalties Paid by Entity In Millions COP
Source: DNP . ANH. Hydrocarbon Royalties, INGEOMINAS: Mineral Royalties (includes salt 2007 y 2008). IFI: Royalties
Figure. Royalties Paid by Entity In Millions COP
Source: DNP . ANH. Hydrocarbon Royalties, INGEOMINAS: Mineral Royalties (includes salt 2007 y 2008). IFI: Royalties
The royalties paid to the departments and municipalities where the natural resources are located and exploited including non-renewable sources like hydrocarbons, are estimated in 19.4 billion COP during the period of 2004 2008, when considering only mining (coal, precious metals, emeralds, nickel, iron, manganese, slat and limestone) the estimated is 3,6 billion COP , which is the 18.9% of the total royalties.
2.
2.1.
AMERICA MINING OUTLOOK

TOTAL GDP Table. GDP BY COUNTRY In Constant Million Dollars for the Year 2000
Source: ECLAC. (t)T emporary
Figure. TOTAL GDP BY COUNTRY In constant Million of Dollars for the Year 2000
Source: ECLAC
2.2.
MINING GDP Table. MINING GDP BY COUNTRY In Constant Millions of Dollars for the Year 2000
Source: Research for the Mining and Energy Ministry in accordance to the estimates of the ECLAC (e) estimate.
Figure. MINING GDP BY COUNTRY In Constant of Millions of Dollars for the Year 2000
Source: Research for the Mining and Energy Ministry in accordance to the estimates of the ECLAC
2.3.
MINING PR ODUCTION BY MINERAL
2.3.1. Coal Table. Coal Production by Country In Thousands of Tons
Source: BP Statistic Review, ECLAC
Table. Gold Production In Kilograms
Source: BP Statistic Review, ECLAC
2.3.2. Gold Table. Gold Production In Kilograms
Source: ECLAC (e) estimate
Figure. Gold Production In Kilograms
Source: ECLAC
2.3.3. Silver Table. Silver Production In Tons
Source: USGS.
Figure. Silver Production In Tons
Source: USGS.
2.3.4. Nickel
Table. Nickel Production In Tons
Source: USGS. Colombia INGEOMINAS

Figure. Nickel Production In Tons
Source: USGS. Colombia INGEOMINAS
2.3.5. Copper Table. Copper Production In Thousands of Tons
Source: ECLAC
Figure. Copper Production In Thousands of T ons
Source: ECLAC
2.3.6. Steel Table. Steel Production In Thousands of Tons
Source: ECLAC. Data for 2008 is not available
Figure. Production In Thousands of Tons
Source: ECLAC
2.3.7. Bauxite Table. Bauxite Production In Thousands of Tons
Figure. Bauxite Production In Thousands of Tons
Source: ECLAC
2.3.8. Zinc Table. Zinc Production In Thousands of Tons
Source: ECLAC. NA: Not Available
Figure. Zinc Production In Thousands of Tons
Source: ECLAC
2.3.9. Iron Table. Iron Production In Thousands of Tons
Figure. Iron Production In Thousands of Tons
Fuente: CEPAL
2.3.10.
Tin Table. Tin Production In Thousands of Tons
Source: ECLAC. Data for 2008 is not available.
Figure. Tin Production In Thousands of Tons
Source: ECLAC
2.4.
FOREIGN INVESTMENT IN MINING
Table. Foreign Direct Investment in Mining In Millions of Dollars
Source: ECLAC, * Balance of the foreign direct investment and the exterior investment
Figure. Foreign Direct Investment in Mining In Millions of Dollars
Source: ECLAC, * Balance of the foreign direct investment and the exterior investment
2.5.
MINERAL PRICES
Table. International Mineral Pric es In Dollars
Source: London Fix, London Metal Exchange, DIAN-DANE
Figure. International Prices of Gold In Dollar / Oz Troy
Figure. International Prices of Silver In Dollars / Oz Troy
Source: LF
Source: LF
Figure. International Prices of Platinum In Dollars / Oz Troy
Figure. International Prices of Tin In Dollars / Tons
Source: LF
Source: LME
Figure. International Prices of Lead In Dollars / Tons
Figure. International Prices of Aluminum In Dollars / Tons
Source: LME
Source: LME
Figure. International Prices of Copper In Dollars / Ton
Figure. International Prices of Zinc In Dollars / Ton
Source: LME
Source: LME
Figure. International Prices of Nickel In Dollars / Ton
Figure. International Prices of In Dollars / Ton
Source: LF
Source: DIAN-DANE
Figure. International Prices of Soft Coal In Dollars / Ton
Figure. International Prices Other Soft Coals In Dollars / Ton
Source:DIAN-DANE
Source: DIAN-DANE
Figure. International Prices of Coke and Semi-Coke In Dollars / Ton
Source:DIAN-DANE
3.
3.1.
COLOMBIAN MINING
MINING MA CROECONOMIC INDICATORS
3.1.1. Mining GDP
Table. Mining GDP In Constant Millions COP of 2000
Source: DANE
Table. Mining GDP by Minerals In Constant Millions COP of 2000
Source: DANE
Figure. Mining GDP In Constant Millions COP of 2000
Source: DANE
In the year 2008 the Colombian GDP increased its annual value in constant prices for 2000 (DANE update) in 2.53%. The increased of the GDP was represented mainly by the mining and quarry activities which presented an annual variation of 7.3% valued in 911.796 million COP at the end of 2008. For the Mining and Quarry sector the participation in the total GDP was 4.77% (including hydrocarbons) and specifically for the Mining sector the participation in the total GDP was 1.51% for the year 2008 in accordance with the valuation methodology establish by the DANE for the GDP . For the year 2008 the mining GDP presented an increase of 1.33% compared with the year 2007, mainly explained by the raise in the value of the GDP of the mineral coal, which for the year 2008 was 4.81% compared with 2007. The relation is explained by the 5.15% increase of the annual coal production which augmented from 69.9 million tones to a production of 73.5 million tons.
3.1.2. Mining Exports Figure. Mining Exports In Millions of Dollars FOB
Source: Dian- DANE, Calculation UPME
Figure. Exports by Mineral In Millions of Dollars FOB
Source: Dian- DANE, Calculation UPME
In 2008 the mining exports represented a 19.79% of the total value of the exports which was 37.626 million dollars FOB. The value of the traditional exports was 5.907 million dollars which was the 15.7% percent of the total export value.
The mining and ferronickel exports (traditional) are 25.2% and 4.32% respectively of the total value of the traditional exports for 2008. Coal and Ferronickel have represented an average percentage in the total export value of 16.6% and 5.2% each one from 2005 to 2008.
The mining exports (both traditional and non-traditional) total 7.447 million dollars FOB which represented a 19.8% of the total exports for 2008.
3.1.3. Foreign Direct Investment in Mining (total and by mineral)
Figure. Foreign Direct Investment In Millions of Dollars
During 2008 both capital and financial accounts showed important entries of long term investment, estimated in US$ 10.600 million mainly from Foreign Direct Investment, which reflects the trust of the foreign investors in the country macro-economical policies.
The amount invested in coal for 2008 was US$1816.6 million and for the amount invested for extraction of metallic minerals was US$121.7 million. The Mining sector showed a reinvestment of profits and other activities valued in US$ 632.8 million.
When analyzing the breakdown of F .D.I the mining sector channeled the second largest investment which reflected the importance of the mining polices directed towards the promotion, exploration and exploitation.
3.2.
GEOLOGIC INFORMATION
3.2.1. Exploration Table. Geologic Knowledge In Square Kilometers
Source: INGEOMINAS
Table. Geochemical Knowledge In Square Kilometers
Source: INGEOMINAS
Table. Geophysical Knowledge In Square Kilometers
Source: INGEOMINAS
3.2.2. Investment in Exploration
Table. Investment In COP
Source: INGEOMINAS
3.3.
MINING MA NAGEMENT
3.3.1. Mining Applications
Figure. Grant Applications by Department In Number of Applications
Source: INGEOMINAS
Figure. Grant Applications by Mineral In Number of Applications
Source: INGEOMINAS
3.3.2. Mining Titles
Table. Mining Titles by Department In Number of Titles
Continue...
Source: INGEOMINAS
Source: INGEOMINAS
Table. Mining Titles by Mineral In Number of Titles
Source: INGEOMINAS
Table. Mining Titles by Contract Type In Number of Titles
Source: INGEOMINAS
3.3.3
Contracted Area
Table. Contracted Area by Department In Acres
Continue...
Source: INGEOMINAS
Table. Contracted Area by Mineral In Acres
Source: INGEOMINAS
3.3.4. Main Projects
Table. Main Mining Projects
Continue...
Source: INGEOMINAS
Continue...
3.3.5. Special Reserve Areas
Figure. Special Reserve Area Borders
Continue...
Continue...
Source: Ministery of Mining and Energy
3.3.6. Indigenous People Mining Zones
Table: Indigenous People Speci al Mining Zones Borders
Source: Ministry of Mining and Energy
3.3.7. Afro-Colombian Communities Mining Zones
Figure. Afro-Colombian Communities Mining Z one Borders
3.3.8. Control Visits
Table. Control Visits In Number of Control Mining Titles
Figure. Control Visits In Number of Control Mining Titles
3.3.9. Explosive Consumption
Figure. Consumption by Type of Explosive
Source: INDUMIL
3.3.10.
Mining Districts Table. Mining Districts
Continue...
Table. Mining Districts in Numbers
3.4.
MINING PR ODUCTION
Table. Mineral Production
Note: The Coal and Cement Limestone sets were updated based on the last quarter report of 2007 produced by Ingeominas S.A. and the ICPC respectively. Source: 1. Ingeominas. 2. IFI Concession Salinas 3. Emicauca 4. ICPC 5. Miner
6. Aceras Paz del Ro, Ingeominas. By banrep and Paz del Rio the production was estimated in 774000 in 2006. 7.
With relation with the 1999-2005 bulletin the set is corrected, based on the data given by Cerromatoso. ** Is the result for multiplying the clinker production reported by the ICPC and a 1,56 factor. *** Is the factor of conversion from pounds to tons 1 lbs = 453.6 grams. The set changed based of the reports by Cerromatoso S.A. **** Corresponds solely to the data on emeralds exports
3.4.1. Coal Production
Table. Coal Production by Department In Millions of Tons
Source: INGEOMINAS
3.4.2. Gold Production
Table. Gold Production by Department
Source: INGEOMINAS
3.4.3. Silver Production
Table. Silver Production by Department In Kilograms
Source: INGEOMINAS
3.4.4. Platinum Production
Table. Platinum Production by Department In Grams
Source: INGEOMINAS
3.5.
MINING CONTRIBUTION
3.5.1. Royalties
Table. Royalties by Mineral In COP
Source: INGEOMINAS. It does not include the royalties collected on salt by the IFI in 2004-2007.
Figure. Royalties by Mineral In COP
Fuente: INGEOMINAS.
Table. Coal Royalties Distributed by Department and Other Entities In COP
Source: INGEOMINAS
Table. Nickel Royalties Distributed By Department and Other Entities In COP
Source: INGEOMINAS
Table. Precious Metals Royalties Distributed by Department and other Entities In COP
Continue...
Source: INGEOMINAS
Table. Emerald Royalties Distribut ed by Department and other Entities In COP
Source: INGEOMINAS
Table. Iron Royalties Distributed by Department and other Entities In COP
Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, that establish the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts, fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal T own Halls in which the exploitation is done, reason for which the information related is partial.
Table. Limestone Royalties by Department and other Entities In COP
Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, that establish the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts, fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal T own Halls in which the exploitation is done, reason for which the information related is partial.
Table. Manganese Royalties Distributed by Department and other Entities In COP
Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in the Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, which establish that the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal T own Halls in which the exploitation is done, reason for which the information related is partial.
Table. Plaster Royalties Distributed by Department and other Entities In COP
Source: INGEOMINAS. Preliminary information, the Financial Statements of INGEOMINAS have not been reconciled. Considered in the Decree 145 of 1995 and 600 of 1996 which are the guidelines of the Law 141 of 1994, which establish that the royalties of the exploitation of construction minerals (gravel, sands, rock aggregate and other gravel), clay, lime stones, silicate sands, feldspar, graphite, asbestos, barite, talc, asphalts fluorite, mica, diatomite, calcite, dolomite, marble, ornamental rocks and aluminum mineral, manganese, magnesium, are collected and transferred by the municipal T own Halls in which the exploitation is done, reason for which the information related is partial.
Table. Salt Royalties Distributed by Department and other Entities In COP
Source: INGEOMINAS. This is preliminary information the Financial Statements of INGEOMINAS had not been reconciled. The information is based on the data that INGEOMINAS is using.
3.5.2. Mining Fund Projects (MFP)
Table. Mining Fund Projects
Continue...
Source: INGEOMINAS
3.5.3. Employment Generation
Table. Population in Mining Thousands of Habitants
Source: DANE. * Information for the first quarter 2008
3.5.4. Base Price for Royalty Liquidation
Source: UPME. 1. The Law 756 establishes a 1% for construction materials and a 3% for non-metallic mineral.
The liquida-
tion base for the royalties for precious and non-precious metals exported in polymetallic concentrates will be the base price for each metal in the external market given by the London Exchange (LME). The royalties for emeralds will be the ones establish in the Resolution 8 of the 1938 August 23 of 1995 and 8 2187 of September 20 of 1995. For the active contract of Cerromatoso a 4% will apply for royalties and another 4% for compensations. For the future contract or extension a 7% will apply for royalties and a 5% for compensations, in accordance with Article 4. For new grants or extension of the active contract, the base price will be fixed in the mine border of entrance and it will be used for the liquidation of the royalties and for cash compensation the base price will be fixed by weighted average of the price (FOB) in the ports. The value for the gram of gold, silver and platinum in the mine entrance used for the royalties liquidation, will be the eighty percent (80%) of the last month international average price, which is publish in the London Metal Exchange (LME) in its Past the Meridian version.
3.6.
SECURITY IN MINING
3.6.1. Information on Security and Hygiene
Table. Information on Security and Hygiene In Quantities
Source: INGEOMINAS
3.6.2. Information on Mining Emergencies
Table. Information on Mining Emergencies In Quantities
Source: INGEOMINAS
3.6.3. Investments in Security and Hygiene
Table. Investment in Security and Hygiene In COP
Source: INGEOMINAS
3.7.
TRANSPORT ATION INFRASTUCTURE
3.7.1. Railroad Figure. Railroad Infrastructure Map
Source: INCO
3.7.2. Ports Figure. Ports Infrastructure Maps
Source: Ministry of Transportation
3.7.3. Roads
Figure. Road Infrastructure Maps
Source: Ministry of Transportation
4.
4.1.
COLOMBIAN MINING IN 2009 (I SEMESTER OF 2009)

MINING GDP AND MINING PRODUCTION BEHAVIOUR
The Colombian economy until the second quarter of 2009 showed a reduction in the GDP value in constant prices of 2000 (DANE update) of 0.5% compared with the II quarter of 2008. In the GDP activity breakdown items as manufacturing, agriculture, trade and transportation showed negative annual variations of 8.9%, 1.2%, 3.3% and 1.1% respectively The mining and quarry sector showed a participation in the GDP of 5.2% (including hydrocarbons) and more specifically the mining sector showed a participation of 1.6% in the second quarter of 2009 valued with the new methodology establish by the DANE for the GDP valuation. The coal semester variation in the GDP was of -0.7% for the II quarter of 2009, the reason was a reduction in the production of the semester of 0.6% from 36.5 million tons to 36.3 million tons. The mining GDP for the first quarter of 2009 showed an increase when compared with the first quarter of 2008 that was valued in 140.8 million COP .
Figure. GDP by Mineral In million of COP in constant prices for 2000
Source DANE, calculation UPME
The semester for coal, metallic minerals and non-metallic mineral GDP showed the following variations -0,8%, 24,2% and 1,4% respectively and related with the first semester of 2008
The growth of the GDP value for metallic minerals is related with the gold production, which showed a semester variation of 58%. Compared with the same period of 2008 the production went from 13.4 tons in the first semester of 2008 to 21 tons for the first semester of 2009.
Table. Mineral Production
Source: INGEOMINAS
Another factor which improved the mineral GDP value of the metallic minerals was the increase of the nickel production, which presented a growth of approximately of 44% when compared with the first semester 2008 production. This annual variation in the production represented 17.472 additional tons compared with the first semester of 2008.
4.2.
FOREIGN DIRECT INVESTMENT ANALYSIS
Based on the information of the first semester of 2009 the final capital and financial accounts presented mayor long term entries, valued in US$ 6.263 million from Foreign Direct Investment in Colombia, which is a support and a vote of trust from the foreign investors on the macroeconomic stability of the country. However the foreign direct investment in the country for the I semester of 2009 presented an annual reduction of 9.6% which represents a reduction of US$ 521 million compared with the first semester of 2008. The foreign direct investment had a value of US $ 4.897 million which has followed the following trend:
Source Banco de la Repblica.
Calculation UPME
The F .D.I in mining and quarries presented a higher value than those made in petroleum estimated in US4 192 million with a total participation in the investment of 35% which showed an annual increase of 56.9% compared with the first semester of 2008. As stated the Foreign Direct Investment in Mining as a participation of 35% represented in US$ 1.716 million of the overall investment which amounts to US$ 4.897 million for the first semester of 2009. In the F .D.I breakdown the mining sector took the first place of capital attraction that demonstrates the importance of the mining sector in the promotion of search and exploitation projects. In the following figure we highlight the participation of the principal economic items to which the F .D.I was directed in the first semester of 2009.
Figure. Foreign Direct Investment by Sector
Source: Banco de la Repblica. Calculation UPME
4.3.
BEHAVIOUR OF THE MINING ROYALTIES
The royalties distributed to the departments and municipalities in which the non renewable natural resources are exploited like, coal, precious metals, emeralds, nickel, iron and manganese and lime stones among other, is estimated around 1.156 million COP in September of 2009 Approximately 87% of the resources that are distributed are generated by coal, 6.3% from nickel, 5.5% by other precious metals, 0.2% by emeralds and 1% by other minerals considered in the period.
Figure. Participation in the Royalties By Mineral
Source Ingeominas, Calculation UPME
Table. Distribution of Royalties by Mineral
Source INGEOMINAS, Calculation: UPME
4.4.
PRICES OF THE MINERALS
Figure. Prices of the Minerals
Source: UPME. * I quarter of 2009

Colombian Minning Statistical Yearbook

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Colombian Minning Statistical Yearbook

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COLOMBIAN MINNING STATISTIC AL YEARBOOK

Delegated Entities: INGEOMINAS General Director Mario Ballesteros Meja

UPME General Director Ricardo Rodrguez Yee

Antioquia Departmental Government Governor Luis Alfredo Ramos Botero

Bolvar Departmental Government Govenor Joaco Berrio Villareal

Boyac Departmental Government Governor Jos Rozo Milln

Caldas Departmental Government Governor Mario Aristizbal Muoz

Cesar Departmental Government Governor Cristian Moreno Panezo

Norte de Santander Departmental Government Governor William Villamizar Laguado