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Oil and  Mining:  Colombia  and  the  United  States            May  2011     • In  2010,  Colombia  was  the  10th  largest  U.S.  supplier  of  mineral  fuel,  mineral  oils  and   bituminous  coal  in  the  world,  and  the  3rd  largest  in  Latin  America  (behind  Mexico  and   Venezuela).     • Colombia  is  the  1st  U.S.  supplier  of  coal,  with  67  percent  market  share  in  2010.       • Colombia  is  the  9th  largest  U.S.  supplier  of  crude  petroleum  oil  and  one  of  the  most   reliable  and  stable  sources  of  energy.  The  longstanding  relationship  between  the  United   States  and  Colombia,  coupled  with  Colombia’s  consistent  political  stability,  ensure  a   continuous  supply  of  these  natural  resources.         • During  these  uncertain  times,  by  failing  to  extend  the  Andean  trade  preferences,  the   United  States  is  imposing  tariffs  on  oil  from  its  most  stable  ally  –  Colombia  –  ranging   between  5.25-­‐10  cents/barrel.     • Colombia’s  mining  sector  is  booming,  and  the  country  is  the  6th  largest  destination  for   investment  in  mining  exploration  in  Latin  America.  The  oil  and  mining  sectors  present   attractive  opportunities  to  U.S.  investors.  From  2009  to  2010,  foreign  direct  investment   (FDI)  increased  by  17  percent,  and  the  oil  and  mining  industry  accounted  for  92  percent   of  U.S.  FDI  last  year.         Colombia's  Oil  and  Mining  Sector   (USD  Millions)   8,500  

7,973

8,000 7,500   7,000  

6,819

6,500 6,000   2009  

2010

Source:  Proexport  and  Banco  de  la  Republica  

The  Santos  Administration’s  National  Development  Plan  2010-­‐2014  projects  an   increase  in  annual  FDI  of  $13  billion  by  2014.  The  largest  percentage  of  that  increase  is   expected  to  be  in  the  mining  sector.     According  to  the  Frazier’s  Survey  of  Mining  Companies  2010-­‐2011,  Colombia  has   improved  its  score  as  one  of  the  most  important  destinations  for  mining  investment  the   world.  In  the  last  survey,  Colombia  ranked  16th  in  the  world  and  2nd  in  Latin  America.      

Embassy of  Colombia   www.colombiaemb.org  

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According a  recent  study  by  the  International  Resources  Investment  Corporation,     titled  “An  Estimate  of  Mining  Production  in  Colombia  by  Districts,  Based  on  Latin     American  Mining  GDP  Forecasts  2008-­‐2019,”  there  is  growth  in  a  number  of  key     mineral  industries,  including:   o   o   o

 

Coal, with  an  annual  growth  rate  of  11.65  percent,  amounting  to     approximately  $3.5  million,  as  of  2007;     Ferronickel,  with  an  annual  growth  rate  of  51.8  percent,  amounting  to  a  total  of   more  than  $1.6  million,  as  of  2007;  and   Construction  materials,  which  are  growing  because  of  public/private  investment  in   infrastructure.  

 

Embassy of  Colombia   www.colombiaemb.org  

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Opportunities in Colombia - Oil and Mining  

A brief presentation about the opportunties for foreign companies in the Oil and Mining sectors of Colombia. Una presentación sobre las op...

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