December 1, 2011

President Santos Announced Cerrejón’s US$1,300 Million Investment To Increase Coal Production A 25 Percent.

The Head of State announced from Casa de Nariño to the media that the company will make the investment to increase coal production of its coal basin located in La Guajira from 32 million to 40 million tonnes per year, bringing royalties up to 350,000 million pesos and creating 5,000 additional jobs.

The mining company, Cerrejón will invest US$1,300 million to increase coal production in Colombia in 25%, announced President Juan Manuel Santos, after a meeting with the top managers of the Company’s multinational shareholders.

“It is very important news and a sign confidence to our country” said the President after a conversation with representatives from Anglo American, BHP Billiton, Xstrata and Cerrejón top management.

The Head of State manifested that such an investment will allow increase coal production on its La Guajira basin from 32 million to 40 million tonnes per year, bringing royalties up to 350,000 million pesos per year and creating 5 thousand additional jobs.

“The actual decision is a1,3 billion dollars investment – which means 1,300 million dollars -, to an 8 million tonnes production increase” declared President Santos.

He stated, “this will increase Cerrejón’s current production in 25%, from 32 million to 40 million tonnes”.

The President added that this investment is a sign of confidence in Colombia, which is seen as one of the countries with brightest future.

“Therefore this is very important news, a sign of trust in our country; they have expressly said so. They have investments in other parts of the world and they see Colombia as one of the countries with a promising future, more attractive to invest, and that is why they decided (to invest)”, restated the Mandatary.

Trust

For his part León Teicher, President of Cerrejón, underscored the announcement made by the President of the Republic and agreed that it is a sign of trust in Colombia.

“This 1,300 million dollars investment the President is referring to is yet another sign of confidence in Colombia, in the Colombian government, President Santos’ administration and we have already proceeded to allocate them”, added the Executive.

“Cerrejón is a company made of Colombians with foreign capital, a company which, among its 10 thousand employees to date, there are only four people who do not have Colombian nationality and that has been committed to our country for the last 30 years”, stated the Executive.

He added that Cerrejón, which shareholders are multinationals of British, Swiss and Australian capital, has been working in a responsible way to comply fiscally, environmentally and socially.

“Therefore with the rise of fiscally, environmentally and socially responsible mining as Cerrejón does, we remain in partnership with the community and the Government aiming towards a prosperous development”, he expressed.

Norman Mbazima, CEO of Anglo American, Jimmy Wilson CEO of BHP Billiton and Peter Freyberg CEO of Xstrata joined Mr. Teicher for his meeting with President Santos.

Original article

http://wsp.presidencia.gov.co/Prensa/2011/Diciembre/Paginas/20111201_08.aspx