Engineering & Mining Journal

JUL 2013

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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R E S O U R C E N AT I O N A L I S M stakes at Paso Diablo, Venezuela's biggest coal mine. ConocoPhillips. The final mining company to leave after an across-the-board mining fiat was Rusoro, a RussianCanadian Toronto-listed gold junior after a profitable—and harmonious— 10 years beginning in 2002. America's Peabody Energy and Anglo American had long since abandoned minority Other Casualties of the Revolution Crystallex International Corp. also suffered a particularly unpleasant high-profile divorce from the palace at Miraflores. Initially, officials at the Canadian company sought to develop one of the world's biggest deposits—Las Cristinas—with its 16.9 million gold oz and 20.8 million oz indicated. But in February 2011 the relationship was "unilaterally terminated." Venezuelan authorities accused Despite a presence at Chavez's funeral, Juan Manuel Santos shared little in common with his fiery neighbor: Indeed, promotion of foreign mining was a centerpiece of his presidential campaign. Bogota has since designated a 7.4-million-acre "strategic zone"—an area the size of Greece—for mining exploration; a further 40% of the countryside may also be available. The policies are well-warranted. As the world's seventh gold producer, the precious metal is anticipated to draw $2 billion in FDI by 2015. Mining Ministry officials seek a 30% increase in gold output to 73 metric tons; from the current 47.8, reported by the National Geological Survey. Giants like South Africa's AngloGold Ashanti, Alabamabased Drummond Inc. and Canada's Barrick Gold all have a presence. The world's No. 5 coal producer, Colombia has large deposits of low sulphur, high Btu coal with a vibrant export market. Bogota currently seeks a 35% increase to a 115-ton annual output by 2014—one estimated to double by the end of the decade. In the past, the U.S. has sourced up to half its foreign coal from Colombia via entities like Alabama's Drummond Company, which has a $1.3-billion joint investment for production. Colombia has a wealth of high-value metallurgical coal, too. This has drawn attention from the Chinese government, which has been in talks with Bogota over a $7.6-billion railroad crossing the country. Colombia has also announced a $3-billion, 1,000-mile rail project with financing from the Inter-American Development Bank. Coal is a top foreign currency earner, along- side an advanced hydrocarbons sector— forecast to be well outstripped by mining— and a fast-emerging tourism industry. Ground zero for Colombia's mining expansion is the commercial hub of Medellin, its second-largest city of 2.7 million—a place long associated with cocainerelated massacres, now beset by throngs of international businessmen. In the foothills of the Andes beyond, it is also surrounded by other foreign opportunity seekers: scores of Canadian junior prospectors and engineers scouring for metals and minerals beneath its mountains. Their synergy underscores yet another promising scenario: Over the past decade, Colombia's economy has grown four times faster than that of Canada— which is home to half the world's mining companies. www.e-mj.com JULY 2013 • E&MJ; 63

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