Cerrej�n Coal Mine Expansion Pre-Feasibility Study

Client

Ingetec, S.A. Cra. 6a No. 30A-30 Santafe de Bogota, D.C. COLOMBIA, SOUTH AMERICA

for

Cerrej�n�s Partners: Anglo American, Xstrata, and BHPbilliton

Completion Date

September, 2011

Project Description

The original Central Plant for the Cerrej�n Coal Mine was developed to provide high rail loading rates to make the dedicated unit train rail transportation system efficient, while minimizing the initial capital cost for the coal processing, handling, and storage facilities.� Initially, with a low annual capacity for the mine, there were only a few trains to load each day.� The 12,000 ton coal silos could be filled at a relatively low rate between trains.� Run-of-mine (ROM) coal was stored near the truck hopper to provide a ready stockpile of coal to supplement truck deliveries from the mine pit to the truck hopper.

In 1985 when Exxon was a major partner in the project, the original design capacity of the Cerrej�n Coal Mine was 15 MTPA and two (2) unit trains were sufficient to meet this capacity.� Modifications and expansions, including adding Plant No. 2, have increased the Central Plant�s capacity to today�s 32 MTPA.� Currently there are five (5) unit trains operating.� The railroad mainline from the mine to the port is 150 km long.� Trains complete a cycle in 12 hours.� Pictured above is a view of Plants No. 1 (left conveyor) and 2 (right conveyor) of the Central Plant and the ROM coal stockpiles, as viewed from the top of train loadout silos.

Cerrej�n plans to expand their existing open-pit coal mine in Colombia from 32 million tons per annum (MTPA) capacity to 60 MTPA. Conceptual studies on different aspects of this program were undertaken by several engineering/consulting firms.� Different options for siting the process equipment, transportation infrastructure, and shipping facilities were analyzed.� From these conceptual studies, Cerrej�n identified four (4) alternatives for the pre-feasibility phase. These alternatives increase production capacity of the existing Central Plant�s facilities to either 50 or 60 MTPA or construct a new 20 or 30MTPA Satellite Plant in the Caypa area.

Cerrej�n engaged INGETEC to investigate the expansion alternatives for the Central and Satellite Plants and for the diversion of the Rancheria River.� The Rancheria River and a tributary courses through some of the new mine pits and portions of the site for the Satellite Plant.� The pre-feasibility work for the expansion alternatives includes the preparation of study drawings, equipment lists, budgets, project schedule, and description of the recommended option.

The increased demands for coal in China, India, Chile, etc. and the expansion of the Panama Canal are opening new opportunities for Cerrej�n.� The expansion program will help Cerrej�n to reach these markets.