1. THE NATIONAL AGENCY OF MINING IS THE
POINT OF ENTRY FOR COMPANIES CONDUCTING
MINING BUSINESS IN COLOMBIA
Maria Constanza Garcia
President
March 2013
1

2. STRONGER AND CLEARER ORGANIZATIONS:
Structure of the Mining sector
National Agency of Mining
Mining Authority
Minister of Mining
and Energy Colombian Geological Service
Subsurface Knowledge
Deputy Deputy
Minister of Minister of Mining and Energy Planning
Energy Mining Unit
Monitoring Markets
& Sector Planning
Entities with specific functions

3. ORGANIZATIONAL STRUCTURE OF NAM
Mining Authority
Board
Office of Technology
and Information
President
Vice President of
Legal Office
Administration and
Finance
Internal Controls Office
Vice President of Vice President of
Vice President of Monitoring, Control Promotion and
Contracting and Titles and Mine Safety Development
Management of
Mine Security and Management of
Registry Rescue issues Small and Medium
Management Scale Mining
Management of
Monitoring and Promotion
Management of Control Management
Mining Titles
Royalty Collection
Management

4. MAIN FUNCTIONS
Promote and encourage development of mining.
Management of mineral resources for and on
behalf of the state.
Article. 4 Hold, manage and track concession and mining
rights for exploration and development of
Decree minerals.
4134/2011
Managing the national mining registry.
Calculate, collect, manage and transfer royalties
and compensation.

5. OPPORTUNITIES IN COLOMBIA
Colombia is a destination for investment
Top destinations for exploration
investment
25% of the global
exploration budget
57
52 51
45 43 41
39 37 36 36
33 32 32 30 29 29
28 27 26 25
22 22 19
17 16
Countries that attract
investment in the
Australia
Tanzania
Philippines
Zambia
Brazil
Ghana
Argentina
Botswana
Indonesia
Canada
Mongolia
Mexico
Bolivia
Namibia
China
Colombia*
India
United States
Kazakhstan
Russia
Chile
Perú
Papua N.G
Congo D.R
South Africa
mining sector
*(Rank 7/25)
Source: (Graph 1) Corporate Exploration Strategies 2012, Economic Metals Group- MEG. (Graph 2) Survey of mining companies 2011/2012 (25 countries) by the
Behre Dolbear Group.

6. OPPORTUNITIES IN COLOMBIA
There are 50 new investment projects in 13 reigons
Mining GDP
12 5,8 6,2
5,4 5,4
10 5,0 5,2
4,5 4,9
CAD$ Billion
8 4,0 4,1
3,3 3,2
6 2,9
4
2 +5,9%
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
120 110 114
Coal Production
100 86 89
MiTn
Historical Projected 74 73 74
80 66 70
60
60 50 54
44 39
38
40
20
-
Source: National Bureau of Statistics - DANE. Mining and Energy Planning Unit-UPME. Ministry of Mines and Energy.

7. OPPORTUNITIES IN COLOMBIA
Mineral Production
Silver Production 2012 Regional Coal Production
OTHER
Tonnes BOYACA, 3% REIGONS 6%
30 80%
25 60%
GUAJIRA, 39%
20 40%
15 20%
10 0% CESAR, 52%
5 -20%
0 -40%
Nickel Production Gold Production
Thousands of Tonnes Tonnes
60 50% 70 150%
50 40% 60
30% 100%
40 50
20% 50%
40
30 10%
0% 30 0%
20
-10% 20
10 -50%
-20% 10
0 -30% 0 -100%

8. OPPORTUNITIES IN COLOMBIA
We are ranked in the top 10 for worldwide
producers and exporters of coal
Top 10 Thermal Coal Producers Top 10 Exporters of Coal
3,000 350
2,500 300
2,000 250
200
1,500
150
1,000
100
500
50
0
0
The Mining sector has provided a significant source of
economic growth for the Colombian economy
Source: http://www.worldcoal.org/resources/coal-statistics/.

9. What are we doing?
CONTENT
• Comprehensive Audit
 Safety and Rescue
• Applications Backlog Processed
• Promotion and Development
 Strategic Mining Areas

10. COMPREHENSIVE AUDIT
New Approach
Comprehensive Audit of all 9,500 mining titles
By March 1: CAD$191 M Support Activities of Comprehensive Audit
 1,759 reviews of
Group 1: HMV Engineers - GENIVAR Colombia
existing
Group 2: Bureau VeritasColombia,-Tecnicontrol
contracts for and BVQI
compliance with
conditions
 438  4* annual visits to titles in the development stage
field inspections  2 annual visits to titles in the exploration stage
 330
 1,400** comprehensive audit reports per month
comprehensive
 100% of mining titles fully audited this year
audit reports
 2% of royalties assigned to review process costs
• Up to 4
** more than1,400 reports

11. SAFETY AND RESCUE
All emergencies attended
Promote a culture of accident prevention
850 Rescue workers (National Mining
Rescue)
CAD$5.6 million Contract awarded to purchase
lifesaving equipment (breathing
apparatus)
101 Emergencies attended
564 Accident prevention visits to mine
title holders

12. What are we doing?
CONTENT
• Comprehensive Audit
• Applications Backlog Processed
• Promotion and Development
 Strategic Mining Areas

13. APPLICATIONS BACKLOG PROCESSED
19,629 Mining Application Requests
19,629 requests evaluated by mid year
NAM
14,451
By March 1: Processed
11,361
 11,361 Requests =
evaluated (58%)
Delegated;
 977 titles 5,178 Processing
8,268
granted
 Processed all
19.629 requests (feb. 2011)
applications for
temporary  Re-open applications system
licenses  New registration information system
 Migrate geographic information system to Magna – SIRGAS
 Evaluate locations available for new mining activities

14. What are we doing?
CONTENT
• Comprehensive Audit
• Applications Backlog Processed
• Promotion and Development
 Strategic Mining Areas

15. PROMOTION OF SMALL AND MEDIUM SCALE
MINING
Legalization of traditional mining activities and
technical support to SMEs
 52 signed  Support sessions for legal transition
contracts for to formal economy
legalization of (Boyacá, Antioquia, Córdoba, Cundi
traditional namarca and Huila)
mining activities
since June 2012  Support forums for provision of
(Antioquia, Boyacá, Caldas, Caquetá,
Cundinamarca, Guajira, Meta, Santa additional training:
nder, Sucre and Tolima)
Guainía, Cauca, Vaupés, Vichada
and Putumayo

16. TRANSPARENCY AND CERTAINTY
New scheme to contract extensions
 Cerro Matoso S.A
 Comprehensive
 Paz del Río Mining S.A. (Iron & Coal)
approach:
social, environm
ental, economic New Agreement with Paz del Río
Mining totals CAD$7.3 bn
and legal Cerro Matoso shows
the way for new
mining contracts
Cerro Matoso changed the
way to negotiate contracts
Coal Agreement with Paz del Río
(Votorantim) total value of CAD$7.3 bn

17. What are we doing?
CONTENT
• Comprehensive Audit
• Applications Backlog Processed
• Promotion and Development
 Strategic Mining Areas

18. STRATEGIC MINING AREAS (SMA):
Background
Encourage the exploration and development of mineral
resources, fulfilling international, social and environmental
standards
Date Landmark
Jun. 16, 2011 National Development Plan
Jan. 30, 2012 Determination of Minerals of Strategic Interest
Feb. 24, 2012 1st determination of SMA
Jun. 21, 2012 2nd determination of SMA
Oct. 2012 Geochemical sampling of SMA
Dec. 2012 Tender process for geophysical exploration of SMA
2013 Structuring the process and inter-agency coordination
Strategic Mining Areas (SMA) contracts awarded through a competitive process which seeks
greater total benefits through increased investment and production.

19. STRATEGIC MINING AREAS (SMA):
Stages
Geoscientific
data compilation Launching the 1st Competitive
Structuration Process Process
process
Semester 1 Semester 2 2014
2013 2013
19

20. STRATEGIC MINING AREAS (SMA):
Scope
Geological mapping and
exploration methods - not
ground disturbing (CGS)
1st Competitive
Process of SMA Prospecting and
exploration
Development

21. STRATEGIC MINING AREAS (SMA):
Inter-Agency Coordination Scheme
1. Single channel communication under the liaison
model
2. Formal and informal relations to facilitate routine
inter-agency cooperation
3. Joint training to foster understanding of each
agency’s role
4. Mechanisms for sharing data
5. Common language and unified messages
6. Environmental and social assessments
7. Technical input for the Competitive Process
21

22. Thank you