civilizar empresa y economia n.5 art.1 (2012) "colombia's mining renaissance"

7/28/2019 Civilizar Empresa y Economia N.5 ART.1 (2012) "Colombia's Mining Renaissance"

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Resumen

Este trabajo de investigacin busca

formular una poltica comprehensiva de in-versin extranjera para Amrica Latina yColombia en la produccin de commodi-

ties como petrleo, gas, oro, plata, metalesindustriales y otros menos conocidos perovaliosos, esto es minerales exticos comoel coltan (es una mezcla de los mineralescolumbita y tantalita) cuyos elementos sonconsiderados crticos para industrias alta-mente tecnolgicas por ejemplo defensa,aeroespacial y telecomunicaciones, debido a

sus particulares propiedades fsicas y qumi-cas. Este trabajo estudia los patrones de -cientes y los resultados de las medidas depromocin de inversin adoptadas por elGobierno colombiano especialmente en el

tendencia de convergencia entre los gobier-nos de Corea del Sur y Colombia en estasreas, que puede ser explotada para ventajamutua, en un marco de libre comercio. Sinembargo, la poltica de convergencia requi-

ere ser probada de manera emprica en laimplementacin de poltica.

Abstract

This research paper aims to for-mulate a comprehensive foreign investmentpolicy towards Latin America and Colombia

COLOMBIAS MINING RENAISSANCE:A BRIEF DISCUSSION ON GOVERNANCE, DEVELOPMENT AND POLICY MAKING

Andrs Aguilera *

in commodities production like oil, gas, gold,silver, industrial metals, and other less known

but valuable minerals, such as exotic mineralslike coltan (columbium or niobium and tanta-lum) whose elements are considered criticalfor hi-tech industries i.e. defence, aerospaceand communications due to their particularphysical and chemical properties. Particularly, to Colombia in recent years and the results ofthe investment promotion measures taken bythe Colombian government especially in themining sector. An important policy conver-gence is found between Colombia and SouthKorea in those areas, that can be exploited tomutual advantage in a Free Trade Agreementframework being concluded between the twocountries. However, the policy convergencestill needs to be tested into policy action.

Palabras clave

Minera, IED, materias primas, expor-taciones.

Keywords

Mining, FDI, raw materials, exports.

JEL: Q32, Q33, Q34.

* Master International Commerce, Korea University, Bachelor of Arts in Political Science, National University of Colombia. This paper was submitted

for graduation requirements at Korea University in 2011 and it has been updated and adapted for publication at CIVILIZAR Empresa & Economa.

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Introductin

Trade in commodities is not a recentphenomenon, from the silk trade in ancient

times to the spice trade -pepper, clove, cin-namon, nutmeg and others- in the 16th Cen-

tury to modern day global supply chain of-ral resources. Trading in minerals is one of themost important activities our in contempo-rary world. However, out of the total tradein natural resources fuels take more than

three-fourths (3/4) of total trade accordingto the WTO World Trade Report 2010 Tradein Natural Resources.

Latin America is a resource rich re-gion (World Bank, 2010)1. Before the arrivalof the Spanish and Portuguese Conquista-dors to the Americas, the Indigenous popu-lation had skilled goldsmiths that producednumerous and invaluable masterpieces. Pre-Columbian history is rich in culture, artsand crafts. When the Conquistadors arrived

to the Americas and found gold and silverin such abundance that fueled legends likeEl Dorado, the lost city made of pure gold

(Galeano, 1979, p. 22). Latin America wasmined for gold and silver in different loca-

tions, Zacatecas in Mexico, Potosi in Boliviaand Ouro Preto in Brazil just to name a few.

Nowadays, Latin America still hasa lot of potential in commodities produc-

tion like oil, gas, gold, silver, industrial metals,and other less known but valuable minerals.Colombia is currently undergoing a miningrenaissancedue to a set of factors that have

The business-friendly and security-orientedadministration of Alvaro Uribe Velez (2002-2010) implemented a series of policies that

turned the country from a near-failed-stateto a strengthen Nation-State that providessecurity to its population and key infrastruc-

ture, developed policies to attract foreigninvestment and introduced reforms that im-proved the business climate.

As mentioned above, fuels take a

substantial share in the world trade in natural

and other fuels) has been widely document-ed and studied. This document will focus onless known minerals but deemed critical by

the United States (National Research Coun-

cil, 2008) and the European Union (EuropeanCommission, 2010a.)

Current technological develop-ments have created demand for exotic min-erals; minerals like coltan, a portmanteaufor columbium (niobium) and tantalum, dis-regarded and unregulated by local govern-ments, these minerals are now indispensablefor the hi-tech industry due to the particularphysical and chemical properties of these el-

ements and their novel applications for sci-ence and technology.

Coltan elements are now deemedcritical for cutting edge industries like de-fense, aerospace and communications butalso a wide range of mass market consumerelectronics like mobile phones, computers,game consoles and others.

The modest objective of this re-search project is to be an exploratory primer

for the formulation of a comprehensive poli-cy and investment formulation towards LatinAmerica, especially in a sector in which SouthKorea is highly import-dependant. Gains forKorea, after a Free Trade Agreement withColombia is concluded, may include securingand diversifying the supply of the aforemen-

tioned critical minerals and for Colombia to investment and the development of these re-sources.

The methods used for data collec-tion and analysis in this research project areSecondary Analysis and Comparative Research.These two approaches are not mutually ex-clusive but instead they reinforce each other,provide a robust data gathering and analyticalframework. The secondary analysis of infor-mation and statistics from supranational insti-

tutions and government agencies as anchordata, this given the ability of these institutions

to conduct large cross-national research and

most likely, to compile data sets using the

8

1 80% of the silver produced worldwide from the 16th to the 19th Centur y came from Latin American mining operations. (World Bank, 2010)

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same methodologies, measurements andindicators thus providing consistency in thedata and a reliable benchmark for the com-parative process. Primary sources consid-ered for this project include, current regula-

tory frameworks and prospective regulatorychanges2, policy papers, government reportsand other relevant documents.

Due to the on-going process of con-solidation in the mining sector and the recentdevelopments in Colombia, a constant moni-

toring international and specialized mediausing information technologies (social media,customized searches, newsletter subscriptionand email alerts) have been used as a way

to identify and count key events (Neuman,2006), that may help to recognize trends andto provide timelines, milestones, future proj-ects and other information relevant to theresearch question. Furthermore, secondarydata techniques [] permit[s] comparisonacross groups, nations or time; it facilitatesreplication; and it permits asking about is-sues not thought by the original researchers.(Neuman)

The comparative approach has

some advantages, A comparative perspec-tive exposes weaknesses in research designand helps you improve the quality of re-search. The focus of comparative research ison similarities and differences between units.(Neuman, 2006) This research project has asmain unit of analysis (but not the only one)

the Nation-State, and the use of statistical in-formation from supranational institutions toavoid problems of equivalence and achieve

and relative (percentages and ratios) terms.

2. Global Mining Industry: A Con-textual Overview

Trade in natural resources has be-come one of the largest industries in the

world, the global mining sector has undergonecorporate consolidation through mergers, ac-quisitions and takeovers (sometimes hostilebidding processes) creating the massive diver-3

The industry environment is ultra competi-tive, poses high entry barriers to new playersand it is regulated tightly. For instance, tradein natural resources is usually curtailed by aset of policies that range from export tax-es, quantitative restrictions (quotas), exportbans, export licenses, mining permits and re-strictions of foreign investment. (World TradeOrganization , 2010, 112 and passim)

Natural resources, especially min-

ing products are indispensable for modernindustry applications hence critical in theglobal supply chain, but they are also unevenly distributed geographically, prone

to price volatility, the development of theseresources often leads to externalities likeenvironmental damage, and might be thesource ofpolitical tension4 domestically andabroad.

Global mineral use is directly pro-portional to economic output. According

to some estimates the global economy hasgrown from 7.1 trillion dollars in 1950 to69.98 trillion dollars in 2009 (in Power Pur-chase Parity) (CIA, 2010)

The demand for minerals (and for ener-gy) grows with the global economy andgrowth in the 20th century and sincewas fueled by unprecedented growth inraw materials use on a global scale, with

the United States and Europe being thedominant users of raw materials. (Na-

tional Research Council, 2008, p. 43-44)

The previous statement is no lon-ger true; there has been a radical shiftin thesupply and demand dynamics of natural re-sources. Today Asian demand for commodi-

ties is driving the economic recovery in Latin

Colombias Mining Renaissance:A brief discussion on Governance, Development and Policy Making

2 The Administration of President Juan Manuel Santos has passed a Constitutional Amendment that reformed mining sector regulatory framework,

3

and Sinochem were contending for control of Potash Corp. a Canadian fertilizer manufacturer, implying further consolidation in the mining andresources industry.

4 An example case of international political tension is the export restrictions imposed by China on Rare Earth Elements. China is today virtuallythe sole producer of these critical minerals for industry and defense applications.


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America.(ECLAC, 2010) Reports releasedin 2010, described that China had become

the largest consumer of oil (Swartz and Os-ter, 2010) and steel5; and back in 2008, TheEconomistnewspaper had already discussed

the trends shown in Chinese commoditiesconsumption;

of the worlds population, yet it gobblesup more than half of the worlds pork,half of its cement, a third of its steel andover a quarter of its aluminium. It isspending 35 times as much on importsof soya beans and crude oil as it did in1999, and 23 times as much importing

copperindeed, China has swallowed worlds copper supply since 2000 (TheEconomist, 2008).

These trends are most likely to be

sustained for the next couple of decades.

India also is playing a key role in thenatural resources arena. Its vast popu-lation and economic performance in

the last decade has positioned this

country among the emerging politi-cal and economics powers competingfor exhaustible resources thus push-ing up commodities prices. India doesnot have the manufacturing capacity ofChina; most of its notable exports aregemstones and information technologyservices, the latter due to the technicalprowess and skills of its abundant andcompetitive labor (English-speaking), yet

the manufacturing sector is growing to

cater the massive Indian market (Win-ters, 2007, p. 17).

South Korea, the country featuredin this research project, is in search of stra-

tegic minerals supply for its manufacturingand electronics industry. The two mineralsdiscussed in this research, niobium and tan-

talum are critical for the steel and electron-ics industry respectively, economic sectors in -cant market share.

The global mining sector is under-going important challenges to its structure,economic output is directly linked to naturalresources consumption, and all economies allover the world are adding pressure to the

current mineral production by an increasingdemand from both developed and develop-ing countries. The current sources of mineralsare being depleted at a fast pace and poten-to mine or politically unstable locations. Also,the consolidation in the industry is leaving which means less competition and the pos-sibility of an escalation in prices.

Recently there has been an in-creased media attention to the so calledRare Earth Elements (REE) due to the de-cision of China to impose an export quotaof less than 35.000 metric tons a year (TheEconomist, 2010) for the next six years ac-cording to reports by international media.The elements are not as rare or scarce as thename suggest, but they are vital for a varietyof industry and defense applications, more-over, China holds a strong monopoly positionin its current production and export of these

the market share (ResearchInChina, 2009).

Emerging technologies and applica-tions will increase the demand of minerals inthe mid and long term, the development ofthese resources is a process that takes time(including the geological survey, prospect-

transport) considerable amounts of capital,planning and logistics (mining infrastructure,

railways, pipelines, ports, etc.) not to mentionbottlenecks and bureaucratic red tape.

A selected group of technologieslisted in the following table will have a sub-stantial impact in the quest for the minerals

that are critical in the manufacturing of thesetechnologies and applications. Readiness andproper investment assessments are neededin order to prevent supply disruptions andmitigate related risks.

5 According to Rachel Tang, an Analyst for the U.S. Congressional Research Service, In 2009, China produced over 567 million tons of crude steel,nearly half of the worlds steel. That was 10 times the U.S. production. (September 21, 2010).

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TABLE 1

Global Demand of Raw Materials for Emerging Technologies in 2030

Raw Material

Gallium

Neodymium

Indium

Germanium

Scandium

Platinum

Tantalum*

Silver

Tin

Cobalt

Palladium

Titanium

Copper**

Selenium

Niobium*

Ruthenium

Yttrium

Antimony

Chromium

Required In 20306

6.09

3.82

3.29

2.44

2.28

1.56

0.78

0.77

0.40

0.34

0.29

0.11

0.03

0.01

Low

Low

Emerging Technologies

Thin layer photovoltaics, IC, WLED

Permanent magnets, laser technology

Displays, thin layer photovoltaics

Fiber optic cable, IR optical technologies

SOFC, aluminum alloy element

Fuel cells, catalysts

Micro capacitors, medical technology

RFID, lead-free soft solder

Lead free soft solder, transparent electrodes

Lithium-ion batteries, synthetic fuels

Catalysts, seawater desalination

Seawater desalination, implants

Thin layer photovoltaics, alloying element

Microcapacitors, ferroalloys

Dy-sensitized solar cells, Ti-alloying element

Super conduction, laser technology

ATO, micro capacitors

Seawater desalination, marine technologies

5 This number represents the number of times current production needs to increase in order to meet projected demand in 2030.* Tantalum and niobium are one of the main themes in this paper. ** Considered critical by KORES (Korea Resources Corporation)

7 For a detail country by country growth rate refer to Annex 1.

Latin America is playing a prominentrole in this scenario of increased demand forminerals, the polymetallic Andes MountainRange, the Brazilian geological diversity and

the Central American and Mexican depos-its, the untapped mineral resources in Bolivia(especially lithium for the next generationbattery technology) are drawing the atten-

tion of international investors.

The next graph shows the evolutionof the export structure of the region accord-ing to the type of product exported. In theearly 1980s, raw materials took more than50% of the exports by value of the region,

this percentage dropped to a regional aver-age of 26.7% in 19997.

In the last decade the trend has re-

versed, there has been a steady increase inraw materials exports value partly due to theoverall high commodity prices experiencedduring the last decade, from an average of27.6% in 2001-2002 up 11.2 percentagepoints to the new average of 38.8% in 2009.This trend may continue during the next de-cade if current projects increase output andnew projects in the pipeline become opera-

tional.



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Latin America will play a critical rolein mineral production as geological studiesare conducted in different countries; an ex-haustive geological wealth inventory of the-ments and investors. Natural Resources poorcountries like South Korea may contribute to

the creation of this public knowledge provid-ing technical expertise or funding.

3. Colombia Mining Renaissance

Colombia is a resource-rich nation; -versity, a favored location with access to theother natural assets. The purpose of thischapter is,

6 Para 1987 miembros del Banco Mundial, as como del Congreso de Estados Unidos vean con preocupacin la posibilidad de un default porparte de Brasil, el cual podra tener consecuencias nefastas para la deprimida economa de Amrica Latina tras la cascada de cesaciones de pagode la deuda iniciada por Mxico en 1982.

FIGURE 1

Latin America and the Caribbean: Export Structure 1980s 2009(Percentage of total value)

Source: ECLAC, (2010). p. 22

that have accompanied this mining renais-sance in the last decade, secondto describeconcisely the current regulatory frameworkand the changes accomplished under the Ad-ministration of President Juan Manuel Santos,thirddiscuss the potential that Colombia ex-hibits in unconventional mineral resources.

Colombia during the 1990s em-barked in a substantial institutional overhaul,a new constitution was promulgated in 1991after a peace process with a largely-urbanguerrilla (M-19) and the opening of the Co-lombian economy to world trade and invest-ment, just to name some of the main features.Colombia had successfully dodged economic plagued the region in the 1980s, not to men-

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tion the populist regimes that crowded thepolitical arena. However, the poor securityperception of Colombia due to a long lastinginsurgency, paramilitary groups and the drug-

try hurting the economy.

Colombia is currently undergoing amining renaissance mainly to three factorsconsidered in this work (security, business-friendliness, incentives for investors) thatThe business-friendly and security-orientedadministration of Alvaro Uribe Velez (2002-2010) deployed the democratic security policy8

to strengthen the position of the Govern-

ment and regain control of most of the ter-

ritory formerly lost to insurgents, paramilitaryalso designed policies to attract foreign invest-ment, especially in the oil and mining sector,and introduced reforms that created a favor-

able business climate for foreign companies.

The improvements in security underthe Uribe Administration as shown in the fol-lowing charts, the reduction of sabotage andattacks to key infrastructure and the reducednumber of kidnappings help as evidence ofa stronger government action, moreover thedemobilization of around 30,000 paramilitar-ies and the military gains against the FARCguerrillas9 helped the perception of an im-

proved security environment.

8 A brief description of the policy goals and results can be found at: http://www.presidencia.gov.co/sne/visita_bush/documentos/security.pdf (Ac-

cessed October 10 2010)9 Strategic Military gains like the Operacin Jaque that ended with the rescue of kidnapped people including former presidential candidate Ingridagainst Mono Jojoy a guerrilla high commander.

FIGURE 2

Attacks or Sabotage to Infrastructure(Percentage of total value)

Source: Presidencia de la Repblica de Colombia. Accin Social Balance de Gobierno 2002-2010:Trabajo, Hechos y Corazn, (2010).



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The number of kidnappings hasbeen reduced drastically, as shown in the fol-lowing graph. Most gains in this factor can beexplained by the territorial control regained

by the Government and the increase in per-sonnel to cover and protect the newly con-

trolled areas.

10 The criteria and top reformers are listed in Annex 2.

11 Colombia has a very attractive framework of investment in most economic sectors. For detailed information check Annex 3.

FIGURE 3

Kinnappings

Source: Presidencia de la Repblica de Colombia. Accin Social Balance de Gobierno 2002-2010:Trabajo, Hechos y Corazn, (2010).

The country has experienced no-ticeable improvements in security during thelast few years, however it is not mission ac-complishedyet. Multiple issues are still in thesecurity agenda of the incumbent Santos Ad-ministration, one of them, is to consolidate

the gains from the previous one.

Alongside the security aspects, the

business climate of the country has also im-proved according to the World Bank reportDoing Business 2010. Colombia is one of

the top 10 reformers, the only from LatinAmerica in this grouping. In the Ease of DoingBusiness ranking among the 183 countries,Colombia jumped from 49 in 2009 (WorldBank, 2009, p. 4) to 42 in 2012 (World Bank,2012). The reforms cover from starting abusiness to dealing with construction per-

mits, paying taxes and protecting investors. Ingeneral, Colombia reformed in eight out ofthe ten criteria surveyed by the World Bankreport.10

Another report by Forbes Magazinenamed Best Countries for Business, Colom-bia ranks 51 out of 129 (Forbes, 2010). In

the Latin American context, Colombia ranks

third after Chile and Peru. Recently, MoodysInvestor Services increased the credit ratingoutlook of Colombia from stable to positive(Bloomberg, 2010) increasing the countrysattractiveness to foreign investment.11

Colombia has also consolidated astrong reputation with foreign investors asa country relatively safe from political risks(nationalizations and contract repudiations)

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and regulatory risks (tax increases and othercumbersome regulation) providing Legal Sta-bility Contracts to investors (Secretaria Se-nado de la Repblica, 2010).12

If the invested amount reaches athreshold of 7.500 Monthly Minimum Wagesor 2.36 million dollars13 investors can enterinto Legal Stability Contracts with the Co-lombian Government. The contracts are usu-

ally signed for periods of 3 to 20 years andthe investor should pay a stability premium of1% of the total investment to the ColombianGovernment (Invest in Colombia, 2010).

The aforementioned mix of policiesprovided a favorable investment climate foroverseas investors, as shown in the graph starting in years 2003 and 2004.

12 The legislation allows the Colombian Government to enter in Legal Stability Contracts for the following activities: tourism, agribusiness, mining,free trade zones, oil and gas, telecoms, infrastructure and others. Ley 963 de 2005.

13 In 2012 the monthly minimum wage in Colombia is 566.700 Colombian Peso (COP). The exchange rate estimated is 1.800 COP to the dollar.

FIGURE 4

Source: World Bank, (2010)

FIGURE 5

Data in million dollars

Source: UPME, (2009)



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Colombian Regulatory Frameworkfor the Mining Industry

The Law 685 of 2001 is the Colom--

tures it describes is the issue of ownership ofminerals, the minerals of any type and place,located in the soil or subsoil, in any naturalphysical state, are exclusive ownership of theState (Colombia Mining Code, 2001) inves-

tors are allowed to participate in the min-ing sector once they have entered conces-sion contracts. This law provided the generalframework for mining development in Co-lombia, the scope of the law covers mining

titles rights, services, foreign participation, the

delimitation of reserved zones, prospect, de- issues.14 The Law 1.382 of 2010 is the mostrecent amendment to the Colombian Min-ing Code; no structural changes were made

to the original framework. Instead, the pro-tection sensitive ecosystems like the prohibi-tion of mining in places above 3.000 metersabove sea level and the protection ofRamsarConvention sites.15

The National Mining Plan to 2019

was developed in 2006 in order to describethe coordination of policies among the dif-ferent levels of government. (UPME, 2006)Three main aspects are covered in this Plan;Promotion of the Mining Country, with

this policy the government aims to positionthe Colombian mining industry to competein the international market. The second partof the plan is the improving of productivity andcompetitiveness of the mining sector followingsustainability principles and strengthening thesocial base of the country. Third, to achievethe proper management of mining resources

through the optimization of policies that sup-ports this strategic sector.

irregularities in the Colombian mining sector,some of them are; illegal mining operations,environmental deterioration associated to il-

legality, child labor and inappropriate fundingfor mining operations.

The National Government designedthe strategy of the Mining Districts (Distritos

Mineros) in order to mitigate the effects ofthe mentioned irregularities. (Ministerio deMinas y Energa, 2009b). The Mining Districtsare zones with strategic and geological con-

tinuity that might be in several jurisdictions,but the operational principles are competi-

tiveness, coordination and sustainability.

The National Mining Policy alsotakes into the account the infrastructurechallenges that the mining sector presents. In

-(railways, ports) is crucial. The National Gov-ernment of Colombia in coordination withlocal authorities is investing in the upgradeof ports and other key transportation infra-structure.

The participation of the mining sec-tor in Colombias GDP (excluding hydrocar-bons) reached 2.8% in 200416-cant when compared to the mining share of

GDP in Chile 15.6% in 2009 (Business NewsAmericas, 2010a) or Peru 5.7% in the sameyear (U.S. Department of State, 2010). Thecurrent Mining Policy and the ColombianMining Code objectives are to position thesector at par with other Latin American min-ing countries (Peru, Mexico, Chile, Brazil, andArgentina) and eventually above the LatinAmerican mining GDP average. 17

The Colombian National Councilon Economic and Social Policy (CONPES)published the national policy regarding thecompetitiveness and productivity in a collec-

tion of economic sectors, among them, themining. The goals described there include theconsolidation of investment, both domesticand foreign in the mining sector [] and theincrease in production and variety of min-eral supply including value added products.(DNP CONPES, 2008, p. 56)

14

15The legislation can be found at: http://www.simco.gov.co/Portals/0/otros2010/ley_1382.pdf16 The mining sector share in GDP had a peak in year 2004 according to UPME (2007). It is estimated that the mining sector current share of GDPis in the vicinity of 2.6% of GDP.17 According to some information, the mining share of GDP in the LAC region is around 7%. (UPME, 2006, p. 81).

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The Administration of PresidentJuan Manuel Santos passed a ConstitutionalAmendment in order to overhaul the Na-

tional Royalty System (Ministerio de Hacien-da y Crdito Pblico & Ministerio de Minas y

Energa, 2011)18, aimed to update the regula-tory framework according to new policy ob--This amendment changed only two articlesin the Colombian Constitution but the regu-latory implementation is still in the making.

The rationale behind this amend-ment is that the National Mining Policy willattract massive amounts of investment to

Colombia and the creation of a StabilizationFund modeled after the world wide knowncases of the Norways Government PensionFund and/or Chiles Copper StabilizationFund in order to avoid the economic effectsof natural resources exploitation known as

the

The Dutch disease a phrase coinedby The Economist newspaper in 1977 de-scribes the impact of natural resources de-pendence in a country macroeconomic

situation. Among the effects of this malaise is;currency appreciation due to the rents ob-

tained by the commodity export thus render-ing other sectors of the national economy asless competitive causing de-industrialization

and increasing the dependence on natural re-sources exports.

Moreover, oil and gas productionand mining are capital intensive activities gen-erating a perverse effect on the labor market(Sachs and Warner, 1997, p. 6 and passim).According to estimates by the Ministerio deMinas y Energa investments up to 57 billiondollars are expected in the mining sector from2010 to 2015, these massive investments will

may appreciate the Colombian Peso.

The following chart shows the ex-change rate between the Colombian Peso years. The trend seen is an evident apprecia-

tion of the Colombian Peso. The COP tradedat around 2.600 to the dollar in the week ofMarch 2, 2009 and appreciated to 1.745 to

the dollar in the week of July 11, 2011.

18 Acto Legislativo 5 de 2011

FIGURE 6

Colombian Peso USD Exchange RateOctober 1 2007 to July 24 2012

Source: Yahoo! Finance.



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The aforementioned ConstitutionalAmendment contemplates the creation of

two general funds, one called Savings andStabilization Fundmanaged by the ColombianCentral Bank (Banco de la Republica) in or-

der to mitigate the effects of the volatility incommodity prices and its effects on the ex-change rate.

The second fund named RegionalCompetitiveness Fund managed by the Na-

tional Government and comprised of twosub-funds Regional Compensation Fundto op-erate for 20 years and targeted to develop

the poorest regions in Colombia and theother, the Regional Development Fund. The

purpose of the Regional Development Fundis to distribute royalties among the largerpopulation because under the current sys-

tem, it is estimated that 80% of the royaltiesreaches regions that make only 17% of thepopulation (Revista Semana, 2010).

The Amendment also includes thedestination of 10% of the royalties to science,technology and innovation projects imply-ing the implementation of a Hartwick Ruleor the reinvestment of rents from national

resource extraction to offset the decliningstocks of exhaustible resources into otherforms of capital (human capital or physicalcapital) that intends sustainability and inter-generational equity. 19

As described in this chapter, thereis evidence of the Mining Renaissance thatColombia is experiencing due to the set ofpolicies implemented in recent years includ-ing the improvement in security, the businessfriendly reforms and the policies to attractforeign investment. However, these policiesalso present challenges in institutional de-velopment to prevent the adverse effects ofnatural resources extraction (Dutch disease)and in the governance of the natural capi-

tal stock of the country through the multiplefunds to be established and the implementa-

tion of reinvestment rules.

When thinking about internationaltrade in minerals by bulk, iron ore, copper,bauxite and other highly traded minerals

come to mind, however there are other min-erals that maybe are not traded in such bigvolume but are critical to the manufacture ofmass market products (i.e. consumer elec-exoticyet pervasive

the current applications of niobium and tan-talum, the potential deposits of these ele-ments in Colombia, and the importance of

these minerals for the Korean industry.

Niobium, which is also know ascolumbium and tantalum are minerals withsimilar characteristics and they tend to occur

together in mineral deposits. One of the min-erals from which niobium (or columbium) coltan, a portmanteau for columbite-tanta-lite.

Niobium and tantalum are strategicminerals deemed critical for both the Unit-ed States and the European Union because

of their importance in key industries (eco-nomic importance); the availability or supplyrisk they present and their importance foremerging technologies.

In order to assess criticality of min-erals, a methodology called Criticality Matrixwas developed in order to tackle this issue.To be critical, a mineral must be both essentialin use (represented on the vertical axis of thematrix) and subject to supply restriction (the

horizontal axis of the matrix). (National Re-search Council, 2008). The far ther a mineral ispositioned from the graphs origin the morecritical it is. In order to fully understand thecriticality of a mineral is important to know

the application for what it is mainly used andits properties (chemical and physical).

19 For a description of the Hartwick Rule and some empirical evidence refer to Chapter 4 The Importance of Investing Resource Rents: A Har twickRule Counterfactual in Where is the Wealth of Nations? Measuring Capital for the 21st Century. (World Bank, 2006).

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The following graph shows the criti-cality matrix, the vertical axis describes theimpact of supply restriction, if a mineral isdeemed as more important; the impact ofsupply restriction is greater. Other aspect to

- -pact of a supply restriction is higher. On the

horizontal axis is the risk of a supply restric-tion. Supply restriction risk can occur in caseof a sudden increase in demand, or in case ofconcentrated production (few players) in thelong term supply risk can be manifested as

geological availability, environmental availabil-ity economic and political availability amongothers (Eggert, 2010).

FIGURE 7

Criticality Matrix for Minerals

Source: National Research Council, (2008) Figure 1.

Niobium or columbium is a metal

with high economic importance due to itsmultiple applications, among them the usein alloys and high performance alloys. Thelargest deposits of economically recoverableniobium are located in Brazil and Canada,niobium materials can also be obtained as aby product of tin production (U.S. GeologicalSurvey, 1993, p. 1). The main use of niobiumis in the steel industry (about 10% of totalsteel production uses niobium) as an alloyingelement in high-strength, low-alloy (HSLA)

steels, as the name suggest, these alloys arestrong and the alloying element is usually lessthan 1%. These HSLA steels are currently

used in oil and pipeline steels, used for lighter

for construction applications (U.S. Geologi-cal Survey, p. 4). Ferro-columbium and nickel-niobium are used for super alloys or materialswith formidable resistance to high tempera-

tures used for defense and aerospace appli-cations. Applications for niobium by productsinclude superconductors used in high-energy-ment magnets in thermonuclear fusion, medi-cal applications included Magnetic ResonanceImaging (MRI) Equipment (European Com-mission, 2010b, p. 144 and passim).



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According to European Commis-sion Report, in 2030 the demand for nio-bium in the production of microcapacitorswill be six times higher than today (Euro-

pean Commission, 2010b, p. 145). Impressiveas it sounds, that sector will take only 3% of

the total consumption. As shown in the previ-ous graph, most of the niobium goes to thesteel sector, and improvements in alloys willbe pivotal for the development of materialsand applications, proper forecasting has notbeen done yet but common sense might tell

that the steel consumption may increase inthe coming two decades. The use of niobiumcan also be used in catalysts to convert palmoil to biodiesel, the development of laser

technology and superconductors howeveris negligible regarding the larger trend.

Tantalum is the second mineral con-sidered for this research project, it is a ductileand is very resistant to corrosion. The elec-tronics industry is the main consumer of thismineral to manufacture microcapacitors, akey component in mass market consumerelectronics. Other uses include the manu-

and signal devices among others. Tantalumapplications also include cemented carbides

FIGURE 8

Niobium Main Uses

Source: European Commission Report. Ad-hoc Working

of metals like tungsten, titanium or niobium,also in the aerospace industry due to thiselement high melting point of 2.996 C keyin the production of refractory superalloys.

This element also has medical applicationslike prosthetics devices (perfect due its non-

toxic nature), the manufacture of laboratoryequipment and even used in nuclear reactors(U.S. Geological Survey, 1993, p. 4).

Australia is the world largest pro-ducer of tantalum, followed by Brazil and theDemocratic Republic of Congo. Most of the

tantalum consumed today comes from pri-mary mineral sources, also as a by productof tin smelting and some estimates calculate

that 20% comes from secondary materials,meaning,

As mentioned before the manufac-ture of microcapacitors for the electronicsindustry takes around 60% of the tantalumused today, followed by carbides 16%, aero-space and automobile applications, basicallyalloys taking 14%, medical applications andrelated technologies take 6% of the con-

equipment (mainly optics). (European Com-mission 2010: 190)

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FIGURE 9

Tantalum Main Uses

Source: European Commission Report. Ad-hoc Working Group

The demand drivers of tantalum inthe coming two decades will probably be su-peralloys and electronics, the tantalum use inmicrocapacitors will probably triple by 2030,

takes 60% of the tantalum use today.

According to MetalPrices.com, aspecialized website, the price of tantalite hasincreased in price substantially during the last3 years, from around 60 dollars per pound toover 165 dollars per pound.

FIGURE 10

Vacuum Processors

3 years - $/LB

Source: MetalPrices.com, September 2009 June 2012 (2012)

The largest deposits of coltan arelocated in the Kivu region in Democratic Re-public of Congo but its trade has been de-clared illegal by the United Nations SecurityCouncil Report S/2003/1027 due the fact

that the exploitation and trade of this andother minerals in has had awful implicationsand human rights abuses.20

20 To discuss the humanitarian issue in Congo/Rwanda is not an objective of this document. This information is inserted as reference in order toidentify the location of the largest known coltan deposits on Ear th.



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For the last years, Colombian andspecialized news media has covered storiesrelated to the coltan extraction and trade in

the Orinoqua region (near the border withVenezuela and Brazil). The U.S. Geologicalnamed Seis Lagosthe largest niobium deposit(Berger, V.I. , Singer, D.A. andOrris, G.J. 2009)

The Seis Lagos niobium deposit is located inLat. 0170.00N, Long. 66410.00W andvery recently the mining authority of Colom-bia, Ingeominas announced that is conductinga joint geological survey with the NationalUniversity of Colombia in two sites, Matraca

(390 Kms away from Seis Lagos) and Cara-nacoa (410 Kms away from Seis Lagos) in theDepartment of Guainia. (Ingeominas, 2010).These three sites are located in the samegeological formation known as the Guiana

Colombian media has reported theseize by Authorities several tonnes of illegallymined and traded coltan earlier in 2009 (ElEspectador, 2009), this may not sound verynewsworthy but the lack of proper public

knowledge on the geological wealth of thecountry has created this opportunity for ablack market and other effects like the lack ofinvestment in the exploration and exploita-

tion of this mineral. On this issue, a formerhead of the mining authority told Business

News Americas (2010b), Currently, we havegeological information on of the terri-

tory and we expect that in 2015, four yearsbefore the 2019 goal, we will have informa-

tion on 100%. In the same interview, the

National Government is working on the des-ignation of 10 million hectares for the explo-ration phase of coltan.

South Korea and Resources

This chapter focuses on three main

the discovery and extraction new coltan de-

posits; second, a description of the KoreanPolicy Guidelines for Overseas Mineral Ex-ploration; and third, a brief description of thebilateral relation between South Korea andColombia.

As discussed in Chapter 4, the twominerals described in this research project industries, namely, steel production and elec- According to World Steel in Figures2010, POSCO is the third largest steel com-

pany in the world and South Korea rankssixth in steel production by country. Given

the fact that natural resources are exhaust-ible and consumption is likely to increase; thedevelopment of new, untapped deposits iscritical for the sustainability of these indus-

tries.

TABLE 2

Steel Production by Company

Rank

1

2

3

4

5

6

7

8

9

10

Company

ArcelorMittal

Baosteel

POSCO

Nippon Steel

JFE

Jiangsu Shagang

Tata Steel

Ansteel

Severstal

Evraz

Mmt

77.5

31.3

31.1

26.5

25.8

20.5

20.5

20.1

16.7

15.3

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TABLE 3

Steel Production by Country

Country

China

Japan

India

Russia

United States

South Korea

Germany

Ukraine

Brazil

Turkey

2009

1

2

3

4

5

6

7

8

9

10

567.8

87.5

62.8

60.0

58.2

32.7

29.9

26.5

25.3

Source: World Steel in Figures, (2010) p. 8

On the other hand, South Koreahas a preeminent electronics industry, thissector is pivotal for nearly every human en-deavor today, for example in global commu-

just to name a few, most of these hardwareproducts depend on the supply of the men-

tioned exotic minerals for their manufactureprocess.

South Korea imports 97% of theminerals and fuels it consumes, but this facthas not held up economic growth.21 KoreaResources Corporation (KORES) has a cri-

terion to identify strategic minerals as those

which have a great impact in national indus-try, the criteria are minerals which importsexceed 100 million dollars, or the depen-dency rate exceeds 90% (Republic of Korea,2009, p. 21)

major minerals as strategic for Korean industry:

The Ministry of Knowledge Economyof Korea announced in 2009 the creation ofan Overseas Resource Development Fund tobe capitalized with 1 Trillion Won (892 milliondollars) in order to secure resources abroad.The fund will have a startup capital of 110billion won from Korea National Oil Corp.(KNOC) and KORES and expects to attract

the remaining 890 billion won from private

In 2007 KORES developed the ThirdBasic Plan for Overseas Resources Develop-ment (2007 2016), in this plan it is outlined

the main policy tools to promote the explo-ration and development of mineral depos-its (fuels and non-fuels) for a period of tenyears, however, the policy is revised every

three years according to other sources (Dae-Hyung, Ji-Whan and Hyun-Bok, 2008, p. 140-145). The main goal of this policy is to achieve by 2014 in the six mineralslisted in the previous page.

21 According to some information, domestic mining in South Korea represents only 0.23% of GDP.



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24

The policies designed to promotethe investment abroad (Overseas ResourcesDevelopment Business Act) are soft loans(long term, low interest) for the exploration,development and exploitation of minerals

deemed strategic for the Korean economy. are geological survey, geophysical and geo-chemical exploration, feasibility studies and -velopment of mineral deposits, improvementof production facilities, acquisition of equity inmineral projects and others.

Other incentives for foreign explo-ration include tax credits and incentives, ex-

emptions in corporate tax and dividend fromoverseas exploration and production busi-ness activities, and the avoidance of double

taxation through bilateral double taxationagreements. Mining is risky venture for inves-

tors due to the natural complexities of theindustry and the long payback periods, thatis why the Government provides incentivesand offsets related risks through technical -cilities, insurance and other related supportprograms.

According to the Korean MineralInformation Service (KOMIS), Joint Commit-

tees for Resources Cooperation were estab-lished with Indonesia, Australia, Philippines,Russia, Mongolia, Saudi Arabia, Vietnam and

Colombia. However the last Joint Committeebetween South Korea and Colombia tookplace in 1983 (KOMIS, 2010).

The bilateral trade between Colom-bia and South Korea shows a negative tradebalance for Colombia which main exports

to Korea are commodities, namely coffee(34.6%), scrap metals (31.1%), ferronickel(26.9%), other coffee products (2.1%), therest of the exports are composed by latex

balloons, emeralds, leather products, cel- others. On the other hand the main im-ports from South Korea are, vehicles andparts (35.1%), machinery (consumer elec-

tronics, mobile phones, elevators and oth-ers) (25.8%), chemicals (21.2%) metallurgicalproducts (mainly iron-steel plates) (11.2%)(Ministerio de Comercio, Industria y Turismode Colombia, 2008).

FIGURE 11

Colombia South Korea Trade Balance 2004 2008Data in Million Dollars

Source: Ministerio de Comercio, Industria y Turismo de Colombia, (2008).

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According to the Colombian Cen-tral Bank (Banco de la Republica) the cumu-lative Korean FDI to Colombia from 2000 to2009 has been US 51.3 million dollars and isheavily concentrated in the retail sector (ve-

hicles, consumer goods, appliances and oth-ers). On the other hand the mineral sector islast with only 0.1% of the Investment. Just in2007 Korean investment abroad totaled 27.6billion dollars; only 36.7 million dollars (less

than 0.5%) were placed in Colombia (Sala-manca, Forero and Oviedo, 2009).

Even though the Korean investmentin Colombia has focused in the retail sector

there is a policy convergence between thetwo countries, especially in mineral resourcesdevelopment. Colombia has overhauled its

institutional and legal framework to attractforeign investment and Korea has establisheda medium term policy to achieve certain-

tions and investment promotion for the Ko-rean private sector in overseas explorationand production projects.

FIGURE 12

Korea FDI to Colombia by Economic Sector 2000-2009

Source: Proexport, (2010)

In June 2012, Colombia and SouthKorea concluded free trade agreement ne-gotiations; for the signature of the agreementSouth Korean President Lee Myung-bak vis-ited in Bogot, Colombia. It is important tokeep in mind that despite the long geograph-ical distance between the two countriesand economic exchange. For instance, Co-lombia was the only Latin American country

that sent troops to support the South duringthe Korean War. Formal diplomatic relationswere established in 1962, and embassies

were opened in 1973. In 1986, the bilateralrelations deepened with the signature of aCultural Agreement, Cooperation in Scienceand Technology and a Trade Agreement. In thelate 1980s and early 1990s South Korea pro-vided support in a telecommunication proj-ect (Graduate School of International StudiesSNU 2009). In recent years (2009 2010)Memoranda of Understanding have beensigned in areas such as Industrial Cooperation,

Mining and Energy Cooperation, Telecommu-nications, Investment Protection, and FinancialCooperation to Avoid Double Taxation. The



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26

next logical step is to enter in a Free TradeAgreement.

The feasibility studies conducted byFedesarrollo for the Government of Colom-

bia and by the Graduate School of Interna-tional Studies of Seoul National Universityconcluded that entering into a FTA with eachother was desirable due to the complemen-

tarity of each economy and the opportuni-ties, advantages and economic rewards oncetraded barriers are removed.

Challenges / Conclusions

The recent political, legal and economic en-vironment of Colombia is bringing the at-tention to the point of creating a new grou-ping of economies with high potential after

the BRIC countries. In early 2010, MichaelGeoghegan, HSBC Group Chief Executivegave a speech before the American Chamberof Commerce in Hong Kong (Geoghegan,2010) acknowledging that the worlds centreof gravity is steadily shifting east and southand describing how the recovery from the -

ing countries. In his speech, Mr. Geoghegandescribed another grouping of countries thathe portrayed as the new BRICs, these coun-

tries share certain characteristics like a large,young and growing population, [] a diverseand dynamic economy, [] in relative terms,politically stable, [] each have a bright fu-

ture. (Geoghegan, p. 1-2).

The New BRICs are the CIVETScountries. CIVETS is an acronym coined by

Mr. Geoghegan and corresponds to Colom-bia, Indonesia, Vietnam, Egypt, Turkey andSouth Africa. The geographical variety of thisgroup is gratifying as it includes countriesfrom South East Asia, Africa, the Middle Eastand Latin America.

The introduction of the BRICs acro-nym by Goldman Sachs Jim ONeall (2001),

the acronym has been widely discussed bymedia and academia and became a mantrafor investors, economists, academics and in-

terested citizens. The concept consolidatedand eventually turned out as a Almost a decade after concept

was introduced; the BRIC countries are in the -ers in worlds affairs. Hopefully, the CIVETScountries follow a similar path and achieve

their potential.

The increased demand for all kindsof commodities has put Latin America and

the Caribbean back in the map of investorsand policy makers all over the world. More- pointed by Michael Geoghegan, the center ofgravity is moving East and South.

South Korea is not a newcomer in

the region it has signed a Free Trade Agree-ment with Chile and most recently with Co-lombia; it has considered negotiations withMERCOSUR and attempted negotiationswith In the case ofBrazil, this coun-

try is listed in the top 20 import sources forKorea. The feasibility studies for the SouthKorea Colombia FTA describe these twoeconomies as complementary across differ-ent economic sectors. The actual outcomesof the implementation of a FTA are still to beseen.

The pattern of-lombia in recent years can be perceived asevidence that the gains in security, the im-provement of business climate and the in-vestment promotion measures taken by theColombian government are paying off and

the overhaul of the Mining Law and other le-gal and institutional changes are preparationsfor the anticipated investments in this sector.

An important policy convergence isfound between Colombia and South Korea,on one hand, Colombia is coordinating dif-ferent policies in order to attract foreign in-vestment to the oil and mining sector ; on theother hand, South Korea is promoting the de-velopment of overseas mining businesses inHowever, the policy convergence still needs

to be tested into policy action.

Colombias mining renaissance is a

concept in the making, the countrys miningGDP is below the regional average but someof its macroeconomic effects are already

Andrs Aguilera


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27

seen and debated. The Colombian Peso hasappreciated substantially during the last 12months fueling fears of a case of the DutchDisease.

One of the measures to vaccinatethe country against the Dutch Disease is thecreation of Stabilization and Savings Funds(modeled after the Norwegian and Chil-ean experience) mentioned in Chapter 3, inorder to establish these funds the Colom-bian Government passed the ConstitutionalAmendment Acto Legislativo 5 de 2011, anarduous regulatory and institutional processis required for this initiative to become fullyoperational because of the magnitude of the

changes (basically the redistribution of royal-ties worth around 6 billion pesos 3.2 billiondollars).

One notable feature of the Consti-tutional Amendment is the implementationof a Hartwick Rule, basically the re-invest-ment of 10% of the royalties in Science andTechnology projects, a true policy innovationin Colombia.

Colombia has proven reserves of

oil, gas, coal, nickel, gold and others less valu-able but no less economically important min-erals. Minerals that are not traded in bulk orare listed in a stock market Exchange-TradedFunds (ETFs). Sulfur, phosphates, potash, wol-framite (tungsten) and cassiterite (tin) are

just part of the geological wealth of Colom-bia. Investment in public knowledge is crucial;basically the through the elaboration ofgeo-logical surveys in order to identify and locatemineral deposits and assess the potential of

these untapped resources. columbite-tanta-lite, discussed in Chapter 4, or better knownby its por tmanteau coltan, contains elements

that are crucial for two of the most impor-tant Korean industries, steel and electronics.Geological deposits containing coltan have-nia, Colombia. A comprehensive geologicalsurvey (geophysical and geochemical explo-ration, trenching, sampling and interpretationof data) is needed to assess if the mentionedcoltan deposits are economically viable.

Mineral extraction creates externali-ties that need to be properly addressed bypolicy makers and mining authorities. Pollu-

tion and the disturbance of ecosystems areusually cited as the worst externalities related

to the mining sector, the concept ofnaturalcapital should be included in the assessmentand viability of extractive projects. Colombiais rich in biodiversity and water, elements

that are not thoroughly appraised and fac-tored in the decision making process. To de-termine the value of natural assets is not partof this project but it is an open question forfurther research in resources policy formula-

tion. 22

Mining is water intensive and someextraction practices use pollutants (mercuryor cyanide in the case of gold production).One of these processes is called leaching, theuse of water mixed with cyanide to isolate

the gold particles from the ores containing it.Alternate, less polluting methods like biole-aching (the use of oxidizing bacteria insteadof cyanide for the separation process) arecurrently available but not enforced. (Mohdet al., 2009)

Comparative studies among re-source rich countries suggest that good go-vernance and institutions determine if natu-ral resources abundance can be considered ablessing or a curse. Resource rich countrieswith weak institutions are usually prone toColombia has enjoyed functional institutionsbut more can be done on governance issueslike transparency.

The Extractive Industries Transpar-ency Initiative (EITI) has been proposed as amodel for governance and transparency; how-ever compliance is voluntary and depends on

the willingness of national governments. Onthe other hand, a push for transparency in themining sector was included in the recentlyadopted Financial Regulation measures of the In

this massive document, dedicated largely to was included a short but extremely impor-

22 Given the increased awareness in environmental issues and the imminent risks posed by climate change, the valuation of natural capital is avery recent trend in policy formulation. The UNDP Repor t TEEB The Economics of Ecosystems and Biodiversity for National and International PolicyMakers is a great primer for fur ther study.



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tant rule that will affect the transparencypractices of corporations dedicated to oil, gasand mineral production.

The so far ignored Section 1504 of

the Dodd Frank Act will impose transparency

their reports with the United States Securi-

ties and Exchange Commission (SEC). Oil,gas and mining companies will have to dis-close details in the payments made to foreigngovernments. The scope and reach of Section1504 need to be studied in order to com-

prehend the real implications of this piece oflegislation for all stakeholders.

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2009. Accessed October 14 2010. Online at http://www.bnamericas.com/news/mining/Mining_sector_contributes_15,6*_of_GDP_in_2009

Business News Americas (2010b). Ingeominas aims to have explored 100% of territory in 2015.

July 29, 2010. Accessed August 15, 2010. Online at http://member.bnamericas.com/news/mining/Ingeominas_aims_to_have_explored_100*_of_territory_in_2015

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World Trade Organization (2010) World Trade Report 2010 Trade in Natural Resources.

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ANNEX 1

Latin America and the Caribbean growth in Exports of Raw Materials1990-1999 and 2000-2009

(Average annual growth rates in value)

Region/Country

Latin America and the Caribbean

South America

Andean Community

Bolivia

Colombia

Ecuador

Peru

Venezuela

Chile

MERCOSUR

Argentina

Brazil

Paraguay

Uruguay

Central American Common Market

Costa Rica

El Salvador

Guatemala

Honduras

Nicaragua

Mexico

Panama

Cuba

Dominican Republic

CARICOM

1990-1999

2,6

2,7

4,5

-1,3

5,4

3,9

4,7

-3,1

7,9

4,8

7,5

3,8

-5,1

0,7

6,4

7,2

4,8

6,6

4,4

4,0

1,8

9,7

-1,4

2000-2009

11,4

13,0

13,5`

21,1

10,6

12,4

19,1

8,8

13,4

15,0

8,1

19,2

17,2

15,0

4,9

1,4

-2,0

7,9

8,5

7,6

6,3

-0,1

-30,6

13,0

12,2

Raw Materials Exports

Andrs Aguilera


27/27

ANNEX 2

Doing Business Report 2010Top 10 Reformers 2008/2009

Country

Rwanda

Kyrgyz

Republic

Macedonia,

FYR

Belarus

United Arab

EmiratesMoldova

Colombia

Tajikistan

Egypt, Arab

Rep.

Liberia

Registering

Property

Dealing with

Construc-

tion Permits

Protecting

Investors

Enforcing

Contracts

Starting

a Business

Getting

Credit

Trading Across

Borders

Employing

Workers

Paying Taxes Closing a

Business

Source: WORLD BANK (2009) p. 2.

ANNEX 3

Investing Across Borders Colombia and Selected Latin American Countries23

23 WORLD BANK GROUP 2010 P18 19

Index

Economy

Argentina

Bolivia

Brazil

Chile

Colombia

Ecuador

Mexico

Peru

Venezuela

Mining Oil

and Gas

100.0

49.0

100.0

100.0

100.0

100.0

50.0

100.0

74.5

Agriculture

and Forestry

100.0

100.0

100.0

100.0

100.0

100.0

49.0

100.0

100.0

Light Manu-

facturing

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Telecoms

100.0

49.0

100.0

100.0

100.0

100.0

74.5

100.0

100.0

Electricity

100.0

49.0

100.0

100.0

100.0

85.4

0.0

100.0

85.7

Banking

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Insurance

100.0

100.0

100.0

100.0

100.0

100.0

49.0

100.0

100.0

Transporta-

tion

79.6

89.8

68.0

100.0

100.0

69.8

54.4

89.8

20.0

Media

30.0

100.0

30.0

100.0

70.0

74.5

24.5

100.0

20.0


civilizar empresa y economia n.5 art.1 (2012) "colombia's mining renaissance"

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