colombia expansion, page-8

Investment in colombia really? yes really

Read the link to the Fraser's Survey I posted below on this thread - in many respects Colombia rates more highly than SA. How can you compare it with "libya, irak or afganisthan" (sic)? Some people really need to do some basic research before posting on HC. Glad that you know more than BHP, Glencore, AngloAmerican, Xstrata, Vale and other companies who have invested heavily into Colombian coal - I'm sure these guys would all benefit from from your geopolitical wisdom.

Colombia coal production tipped to reach 97m tonnes in 2012

Friday, February 17, 2012 by Proactive Investors

Colombia's coal production is expected to reach 97 million tonnes this year, the mining minister has said.

Colombia's coal production jumped 15.4% in 2011 to 85.8 million tonnes versus the previous year while exports rose 16 percent to 79.2 million tonnes.

The largest production increases were in the Cesar province where Glencore's Prodeco unit, Drummond International and Vale operate.

Colombia's coal industry is dominated by big producers, with their own port and railways, such as Glencore, Drummond and Cerrejon, which is owned equally by BHP Billiton, Anglo American and Xstrata.

The main markets for Colombia's coveted coal are the United States and Europe although exporters have made shipments to Asia depending on the cost of freight.

Production in the Guajira state, where Cerrejon, the country's largest exporter, has four of five licenses to mine, increased 7% to 33.3 million tonnes in the same period.

The top three producers export almost all their output.

Vale was reported to be was selling its Colombian coal operations in November Reuters said.

Goldman Sachs is the front-runner in an auction to buy the Colombian coal assets of Brazil's Vale, attempting to achieve strategic port access, while Glencore waits in the wings.

Coal mines in the past few years have attracted almost frenzied M&A interest, particularly from traders seeking to become vertically integrated and Asian consumers such as India and China, but buyers are becoming more choosy, focusing on large, low-cost mines with big reserves.

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