Cerrejón announces the creation of more than 5,000 new jobs and important additions in the value chain in La Guajira

August 25, 2011

Cerrejón looks at the futureAfter completing pre-feasibility and feasibility studies over several years, Cerrejón has received all of the necessary approvals to proceed with the P-40 expansion project. It concerns increasing production and export capacity by 25% (8 million tonnes per year) in order to reach 40 million tonnes of production and export annually.

This expansion will generate almost 1,200 direct, high-quality jobs in Cerrejón. For each direct employee, between four and six indirect jobs will be created through production projects and the boosting of the value chain generated by our purchases of goods and services in the region and country ($900 thousand million pesos in 2010).

The project requires investments estimated to be approximately US$ 1.3 million over the next four years in order to mine the existing coal reserves, and to develop the wealth of the region and the country, which, together with our recognized environmental and social practices, will have very positive effects for the population of La Guajira and Colombia.

The P-40 expansion will be carried out within the current mining areas without affecting new terrain and will demand an increase in coal production and train transport, as well as the shipping capacity in Puerto Bolívar.

P-40 includes a production increase at each one of the current pits, and as a result the usage of a larger amount of mining equipment. Crushing and train transport capacities will also be increased, in addition to the construction of a second loading pier and a second ship loader in Puerto Bolívar.

From 2015, with the export of 40 million tonnes of coal yearly, the projected value of the exports will be approximately US $4 billion yearly. The annual income for the nation and for the region due to taxes and royalties will be increased substantially. In 2009 and 2010, Cerrejón paid the nation nearly US $1.4 billion in taxes and royalties. Our expansion by 25% will naturally increase those figures and the production chain figures.

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