Investment catalogue in strategic sectors
Transkript
Investment catalogue in strategic sectors
REPÚBLICA DEL ECUADOR Investment catalogue in strategic sectors 2015 - 2017 Investing in Ecuador is investing for the future. INVESTMENT CATALOGUE IN STRATEGIC SECTORS 2015-2017 Rafael Poveda Bonilla Minister Coordinator of Strategic Sectors Pedro Merizalde Minister of Non-Renewable Natural Resources Esteban Albornoz Minister of Electricity and Renewable Energy Augusto Espín Minister of Telecommunications and Information Society Walter Solís National Secretary for Water Research and Production Ministry Coordinator of Strategic Sectors Editing and proofreading: Andrea Zumárraga V. Translation: Sara Herrera C. Graphic Design: Diego Corrales D. Printing: Impresora Flores 2015 REPÚBLICA DEL ECUADOR Investment catalogue in strategic sectors 2015 - 2017 INVESTMENT CATALOGUE IN STRATEGIC SECTORS 2015-2017 1. INDEX 2 2. MESSAGE OF RAFAEL POVEDA, MINISTER COORDINATOR OF STRATEGIC SECTORS 3 3. EXECUTIVE SUMMARY 4 4. MINISTRY COORDINATOR OF STRATEGIC SECTORS a. About us b. Strategic Objectives 5 5. INVEST IN ECUADOR a. Growing economy b.Safe and transparent country. c. Qualified human talent d. Consolidated infrastructure networks 6 6. SECURITY FOR FOREIGN INVESTMENT 8 7. INCENTIVES FOR PUBLIC AND PRIVATE FOREIGN INVESTMENT 9 8. OPPORTUNITY TO FINANCE PROJECTS IN ECUADOR 10 9. MODALITIES OF INVESTMENT11 10.CONTACT 12 11. BASIC INDUSTRIES PROJECTS 13 12. MINING PROJECTS 25 13. PRIVATE MINING SECTOR PROJECTS 61 14. OIL SECTOR PROJECTS 74 15. BIOENERGETIC SECTOR PROJECTS 97 16. ELECTRIC PROJECTS 101 17. WATER SECTOR PROJECTS 116 18. TELECOMMUNICATION SECTOR PROJECTS 121 19. TECHNICAL DEFINITIONS123 20. ABBREVIATIONS AND ACRONYMS 124 21. SYMBOLS AND MEASURES125 2 Investment catalogue in Strategic Sectors 2015-2017 MESSAGE OF THE MINISTER COORDINATOR OF STRATEGIC SECTORS The Government of the Republic of Ecuador has promoted public policies focused on the responsible governance of our natural resources. With this judicious vision, the Ministry Coordinator of Strategic Sectors was created with the mission of directing the policies and actions of the institutions that make up hydrocarbons, mining, electricity, telecommunications, water, and environment sectors. In these eight years, the government of President Rafael Correa Delgado has reached a significant growth in GDP of 4.3% compared to 3.15% of Latin American average. Based on the effectiveness of public policies, investment in strategic projects and their implementation, we have focused on transforming our energy matrix as a means to change the production matrix. These investments are intended to generate a dynamic economy focused on knowledge and innovation, diversified, inclusive and environmentally sustainable, producing 93% of energy generated from renewable sources by 2017. This is low-cost pure energy that will benefit production processes, enabling the good governance of our natural resources. In our policy to change the production matrix, a fundamental pillar for the cross-sectional development of the country is the creation of basic industries to enable that our economy makes a quantitative leap, thus enhancing the use of our natural resources, adding value and improving the competitiveness of Ecuador. This will generate in the short, medium and long term, high potential for exports, imports substitution, and productive chaining. With this background we present the updated edition of the 2015-2017 Investment Catalogue in Strategic Sectors, which includes investment opportunities, strategic alliances and other contracting modalities totaling more than 37,000 million dollars. This document could not have been prepared without the valuable cooperation of all the Ministries and affiliated institutions that rule the Strategic Sectors and, especially, without the passion and drive of our employees. Based on proper strategic planning, efficient management of our resources, and decisive commitment to transform the country, we invite you to join us in the near future. We are sure that, together, we are making true the dream that we started in 2007. Rafael Poveda Bonilla Minister Coordinator of Strategic Sectors 3 EXECUTIVE SUMMARY The Investment Catalogue in Strategic Sectors 2015-2017 is an essential guide for national and international investors and financial institutions about the opportunities for public and private investments the country offers. Projects are divided according to the sector they belong to: basic industries, mining, oil, bionergetic, electric, water and telecommunications. In total, this cataloge includes 94 projects, both public and private, of which 83 are of the Ecuadorian state and require an investment of 37,153 million dollars. Nº. Projects Mumber of projects 1 Basic industries 10 2Mining 8 3 Mining blocks for bidding 25 4 Private mining 11 5Oil 21 6Bioenergy 2 7Electric 13 8Water 3 9Telecommunications 1 TOTAL 58 Investment amount (Millions of USD) 11,955 133 17,034 1,155 5,786 727 363 37,153 Prepared by: Ministry Coordinator of Strategic Sectors 4 Investment catalogue in Strategic Sectors 2015-2017 MINISTRY COORDINATOR OF STRATEGIC SECTORS ABOUT US The Constitution of the Republic of Ecuador considers that energy in all its forms, telecommunications, non-renewable natural resources, hydrocarbons, biodiversity, genetic heritage, the radio electric spectrum and water, among others, constitute the strategic resources of the country. We are the agency responsible for leading the policies and actions of the institutions that make up the Strategic Sectors; Ministries of Non-Renewable Natural Resources, Electricity and Renewable Energy, Telecommunications, Environment, and the National Secretariat for Water in order foster, through the coordinated, structured and efficient implementation of plans, programs and sectoral and intersectoral projects, and through international financing, compliance with the National Plan for Development, improving the quality of life of citizens, and fostering efficiency in the institutions. STRATEGIC OBJECTIVES 1. BE SOVEREIGN, with self-sufficiency in electric generation, refining of derivatives, access to Information and Communication Technologies, and management of water resources. 2. BE PRODUCTIVE, providing quality in electric and telecommunications services, in the exploitation of hydrocarbons and minerals, and in the management of water resources. 3. BE INCLUSIVE, in the provision of public services accessible to all the population, and in the access to resources exploitation to the revenue produced by them. 5 INVEST IN ECUADOR GROWING ECONOMY Ecuador has become one of the most dynamic economies in Latin America. Since 2007 has maintained an average growth rate of 4.3%1 and currently is the country with the highest public investment, which reaches 11% of the GDP2. Moreover, Ecuador is in the position 71 of the Global Competitiveness Index, the best position since 20073. These successes have been achieved thanks to the political stability of the country that has made it possible to make proper decisions during the Government of the Citizen’s Revolution. Ecuadorian currency is the USD dollar, which has contributed to make our country attractive for foreign investment. Inflation is of only one digit, lower than the Latin American average. For more information, please visit: www.bce.fin.ec SAFE AND TRANSPARENT COUNTRY In order to strengthen a culture of honesty, ethics and quality in public administration, Ecuador has enacted laws that promote transparency in all contracting processes, which are carried out by the National Service for Public Acquisition (SERCOP in Spanish), through agile, efficient and technologically updated procedures which facilitate the control of both contracting entities and suppliers, and of the general public. For more information, please visit: www.compraspublicas.gob.ec Similarly, public companies can carry out contracting procedures through a special regime determined by their specific line of business and, in case they have subscribed strategic alliances, alliances or others documents of similar nature, such processes shall be determined by the agreement. 1Source: Economic Commission for Latin America and the Caribbean, ECLAC, Preliminary Overview of the Economies of Latin America and the Caribbean 2014, updated at December 2014. 2 Central Bank of Ecuador, Economic Commission for Latin America and the Caribbean, ECLAC, based on official figures. 2014 data for Ecuador corresponds to the projection made by ECLAC, published in the Preliminary Overview of the Economies of Latin America and the Caribbean (updated at December 2014). 3 Source: World Economic Forum. The Global Competitiveness Index Historical Dataset © 2005 - 2014. 6 Investment catalogue in Strategic Sectors 2015-2017 QUALIFIED HUMAN TALENT We are the country that has made the highest investment in post-secondary education in the entire region, reaching 2.12% of the GDP4. From 2007 to 2014, young Ecuadorians are studying in the best universities of the world thanks to the delivery of 10, 482 scholarships5. To progress towards a social economy of knowledge, more than 1,000 million dollars will be invested in new universities, including Yachay, thus enhancing the capacity for innovation and research in the country. The experience that Ecuadorian labor has on megaprojects of the strategic sectors makes it highly productive and with great capacity learning. Salaries of Ecuadorian workers are competitive in relation to other countries. Ecuador has one of the lowest unemployment rates in South America which is of about 4.5%. Ecuadorian population is 15,492,2646 and more than 44% of them belong to the economically active population affiliated to social security7, which reflects social cohesion and access to public services that ensure a better quality of life. For more information, please visit: www.ecuadorencifras.gob.ec CONSOLIDATED INFRASTRUCTURE NETWORKS Ecuador is strategically positioned in terms of infrastructure and logistics. According to the Ministry of Transport and Public Works, Ecuador has a transportation infrastructure of 43,197 km of roads, this being the main means of communication in the country. Thanks to major public investment, two new airports have been built and the existing ones have been modernized. The port system of Ecuador consists of seven public ports and ten private docks, specialized in general cargo and oil. On the other hand, river transport is consolidated through several navigable rivers, such as Guayas, Napo and Morona, some of which are part of to the Manta-Manaus inter-oceanic corridor. In technological terms, Ecuador has installed 37,418 km of fiber optic8, representing an annual growth rate of Internet access of 32.8%9, which is reflected in sophisticated telecommunications services. 4 Source: National Secretariat of Higher Education, Science, Technology and Innovation (SENESCYT), based on information from the Ministry of Economy and Finance 2014, UIS-UNESCO and OECD 2011. 5 Source: Senescyt, 2007-2014. For 2014, the cutoff date is December 31st. 6 Source: National Institute of Statistics and Censuses 7 Source: National Institute of Statistics and Censuses, National Survey on Urban and Rural Employment, Unemployment and Underemployment, conducted in December. 8 Source: Ministry of Telecommunications and Information Society 9 Source: Ministry of Telecommunications and Information Society 7 SECURITY FOR FOREIGN INVESTMENT (Organic Code of Production) • Equality: of conditions and protection for national and foreign investments and investors. • Property: protection of investors’ property (prohibition of all forms of forfeiture). • Rights: liberty of production, marketing, import and export of goods and services, subject to the provisions of the Constitution, laws and regulations established by the current legislation. • Taxation: national and foreign investments are subject to the same tax regime. • Resolution of conflict: investment contracts with foreign investors may include arbitration clauses to solve disputes that arise between government and investors. The dispute may be subject to international arbitration in accordance with the treaties signed by Ecuador. • Investment contracts: provide stability on tax incentives and those stated in the Organic Code of Production. They may include contractual commitments that are necessary for the development of the new investment. Also, for investments above 100 million Dollars, investors can benefit from tax stability incentives over the rates charged to income tax, tax on funds sent abroad, and other national direct taxes. • Other: Free transfer of profits abroad and investment (upon completion of tax obligations and other responsibilities, as stated in legal regulations). For more information, please visit: www.produccion.gob.ec 8 Investment catalogue in Strategic Sectors 2015-2017 INCENTIVES FOR FOREIGN PUBLIC AND PRIVATE INVESTMENT (Organic Code of Production) • Complementary nature: Foreign investments shall have a role of direct complementarity in Strategic sectors and those prioritized in the economy that require investment and financing. • Development and promotion of Strategic Sectors: - Delegate to private initiatives the investment in Strategic Sectors in those cases established by the law for each sector. -New projects of private companies for the generation of electricity, under an equal treatment in terms of mechanisms and conditions of guarantee and/or payment in the purchase of energy, than those applied to international transactions. • Sectoral incentive: Total exemption of Income Tax for five years for new investments, as of the operation phase in the sectors that contribute to the change of the energy matrix; strategic substitution of imports, promotion of exports and rural development. Their implementation in strategic sectors is limited to electric generation projects of renewable energies. - In the specific case of Basic Industries, Income Tax exemption is for 10 years as of the operation of the industry. For more information, please visit: www.produccion.gob.ec 9 OPPORTUNITY TO FINANCE PROJECTS IN ECUADOR (Organic Code of Public Planning and Finances) • Financial Agreement: Financing may establish provisions related to the participation of national companies that provide the loans for the implementation of projects, under the condition that funds are granted in profitable, advantageous or concessional terms for Ecuador. • Guidelines for bidding: ¿What do we observe when evaluating an offer? - Companies with internationally recognized trajectory. - An economic offer within market parameters. - Quality of materials, equipment and service. - Percentage of national aggregate. If the offer includes financing: - Firm offer for financing with an internationally recognized lending entity. - Percentage of financing over the amount of investment. - Term of the credit. - Period of grace for payment of capital (at least equal to the period of time for the implementation of the project). - Interest rate (all in cost). For more information, please visit: www.finanzas.gob.ec 10 Investment catalogue in Strategic Sectors 2015-2017 INVESTMENT MODALITIES Projects in this catalogue, in accordance with each sector and Government policies, may be implemented through different modalities, namely: PRIVATE • DIRECT INVESTMENT: Refers to those modalities in which public or private institutions, different from Ecuadorian public entities, agree to develop in a direct manner, under their sole responsibility and risk, a specific project. In this mechanism are included alternatives such as concessions (electricity, mining, telecommunications), or contracts for the provision of specific services (hydrocarbons), BOT. • STRATEGIC ALLIANCES: Includes several associative modalities between public or mixed Ecuadorian companies with national or foreign public or private companies for the implementation of projects. This modality includes alternatives such as partnership agreements, joint ventures, creation of subsidiaries, and other analogous forms. The selection of partners or allies may be done on a direct basis for national or foreign public companies and, in the case of national or foreign private companies, a special selection process should be conducted. PUBLIC • CONTRACTING WITH INTERNATIONAL PUBLIC COMPANIES: Ecuadorian laws permit direct contracting (commercial and for projects development) with public or subsidiary companies of the International Community. • BIDDINGS WITH FINANCING: Selection processes in which several interested parties are invited to present their technical and economic offers to develop a project, attaching also the financing offer duly supported with a letter of intent or other analogous documents issued by internationally recognized financial institutions. 11 CONTACT Ministry Coordinator of Strategic Sectors investments@sectoresestrategicos.gob.ec Telephone: (593-2)2260670 12 BASIC INDUSTRIES Investment catalogue in Strategic Sectors 2015-2017 Basic industries projects 13 Basic industries Basic industries are based on the responsible exploitation of natural resources (raw materials) that are transformed into intermediate products that constitute the chaining source to generate growth and added value in intermediate and final industries. Basic industries will be located in development poles that are leveraged through the optimization of logistics, transport and services infrastructure, already existing and/or being implemented. These industries have the following incentives: They constitute one of the pillars of the strategy to change the production matrix. Their implementation shall generate acceleration of the economic growth and shall be of support to overcome the major social challenges of the country. • Stability through an investment contract Ecuador is seeking strategic partners to participate actively in the development of Ecuadorian industries. This development will take place under an investment modality that prioritizes foreign and/or local private partners, with potential involvement of the Government. Participation or ownership structures are open. Regarding basic industries, two ways to participate in these projects have been considered: • Exemption of Income Tax (22%) for the first 10 years of industry operation • Special Development Zone, ZEDE (Zona Especial de Desarrollo) with the following incentives: · Exemption of Value Added Tax (12%) for the import of goods for 20 years. · Exemption of Customs Duties and Taxes for the import of goods for 20 years. · Exemption of Tax on Funds sent Abroad (5%) for goods and services for 20 years. 1. Direct investment 2. Strategic public-private alliances PROJECTS OF THE BASIC INDUSTRIES SECTOR Nº. Project name Location Type Investment amount (millions of USD) 1 Linear alkyl benzene (LAB) petrochemical plant Manabí industrial 2 Polyethylene terephthalate (pet) petrochemical plant Manabí industrial 3 Flat steel plant - direct reduced iron (DRI) Manabíindustrial 4 Flat steel plant - ferrous-titaniferous sand Manabí industrial 675 5 Repair shipyard Guayas industrial 180 6 Shipyard for Offshore Support Vessel (OSV) Guayas industrial 100 7 Large vessels shipyard Guayas industrial 700 8 Aluminum smelting plant Manabí industrial 2,500 9 Copper smelting and refining plant 10 Pulp plant 500 1,400 1,100 Manabí industrial 2,000 Manabí industrial 2,800 TOTAL 11 955 Source: Ministry Coordinator of Strategic Sectors 14 Investment catalogue in Strategic Sectors 2015-2017 BASIC INDUSTRIES Linear Alkyl Benzene (LAB) petrochemical plant benzene produced in the “Refinería del Pacífico” refinery, and imported paraffin. Production shall supply local and regional markets. Construction of a petrochemical plant for the production of Linear Alkyl Benzene (LAB) with capacity to produce 115 kton/year using locally sourced C O L O M B I A 0 50 100 km 0º Quito MANTA El Aromo RDP P A C I F I C O C E A N Guayaquil P E R U PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study in process, prepared by Fluor. It is expected to be completed in March 2015 • The construction of the “Refinería del Pacífico” (RDP) refinery, is strategic for the country. • LAB petrochemistry enables to chain products to the detergents market. • Growing demand in the region. • Synergies thanks to the infrastructure developed for the Refinery (roads access, basic services, port, etc.). 500 MMUSD ✓Estimated operation start date: 2019. MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-privat alliances. 15 Polyethylene terephthalate (PET) petrochemical plant locally sourced xylene produced in the “Refinería del Pacífico” refinery, and imported ethylene glycol. Production shall supply local and regional markets. Construction of three petrochemical plants for the production of Polyethylene Terephthalate (PET) with capacity to produce 450 kton/year using C O L O M B I A 0 50 100 km 0º Quito MANTA El Aromo RDP P A C I F I C O C E A N Guayaquil PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study in process, prepared by Fluor. It is expected to be completed in March 2015. • The construction of the “Refinería del Pacífico” (RDP) refinery is strategic for the country. • PET petrochemistry enables to chain products to the plastic bottles market. • Growing demand in the region. • Synergies thanks to the infrastructure developed for the Refinery (roads access, basic services, port, etc.). 1,400 MMUSD ✓Estimated operation start date: 2019. 16 P E R U MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. Flat steel plant – Direct Reduced Iron (DRI) Construction of a plant for the production of flat steel with capacity to produce 1,000 kton/year using natural gas and imported iron ore. Market focuses on covering the local demand (substituting imports BASIC INDUSTRIES Investment catalogue in Strategic Sectors 2015-2017 of hot rolled coils - HRC - and scrap), and the demand of the regional markets of Colombia, Peru and Chile. Other potential uses are in associated industries of cold rolled coils - CRC - and galvanized coils. C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Iron Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study completed by Idom on January 2015. • Domestic demand justifies local production. • Neighboring countries are net importers of flat steel. • Competitive cost to replace imports of HRC and scrap. • Potentiality of natural gas at competitive prices. 1,100 MMUSD ✓Estimated operation start date: 2018. MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. 17 Flat steel plant - ferrous - titaniferous sand Construction of a plant for the production of flat steel with capacity to produce 500 kton/ year using locally sourced ferrous-titaniferous sand and imported coal. The plant will be focused on the substitution of hot rolled coil (HRC) imports. C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Flat steel Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓ Sand characterization study in process. It is expected to be completed in February 2015. • Domestic demand justifies local production. • Neighboring countries are net importers of flat steel. • Competitive cost to replace HRC imports. • Projects for sand mining in Tola Norte and Mompiche under evaluation. • Export potential for titanium and other byproducts to generate additional income. 675 MMUSD ✓Pre-feasibility study should start with the Hatch Company in March 2015. ✓Estimated operation start date: 2019. 18 MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. Repair shipyard Construction of a repair service shipyard with capacity for 80 repairs/year. This project leverages on the relocation of the Astinave shipyard, which is property of the Ecuadorian government. Market focuses on BASIC INDUSTRIES Investment catalogue in Strategic Sectors 2015-2017 covering the local demand and potentially serving other ships from the region. The shipyard will have additional potential to build 2 vessels/year of up to 120m length (e.g. fishing boats). C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Repair shipyard Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study completed by ISDEFE on January 2015. • Shipyards industry is a priority for the government. • Captive market for the repair of Ecuadorian flag vessels (the average age of vessels is high, so frequent repairs are required). • Strategic location on the Pacific coast to absorb the demand of ships heading to the Panama Canal. • Potential for vessels construction to replace the local fleet (e.g. fishing vessels). 180 MMUSD ✓Estimated operation start date: January 2017. (Including repairs and construction) MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. 19 Shipyard for Offshore Support Vessels (OSV) Construction of a shipyard for the construction of vessels of OSV class (e.g. PSVs, light platforms), with capacity of 2 units a year. Initial focus is on the local market of offshore gas exploration with the potential of future exports to the regional market. C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study completed by ISDEFE on January 2015. • Shipbuilding industry is a priority for the government. • Estimated demand of 16 PSVs and 5-8 light platforms over the next 8 years for the industry of offshore natural gas exploration. • Competitive labor costs. 100 MMUSD ✓Estimated operation start date: July 2017. 20 MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. Large vessels shipyard Construction of a shipyard for the production of large vessels (e.g. Aframax type tankers), with capacity to produce 4 units/year. Initial focus is on the local market BASIC INDUSTRIES Investment catalogue in Strategic Sectors 2015-2017 of tankers for crude oil export with potential for future export and production of other vessels such as bulk carriers. C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study completed by ISDEFE on January 2015. • Shipbuilding industry is a priority for the government. • Captive market for Ecuadorian vessels: • Export of crude oil is a priority for the country. • Potential demand for 20 tankers in the next 6 years. • Potential Ecuadorian demand to build bulk carriers. • Competitive labor costs. 700 MMUSD ✓Estimated operation start date: 2018. MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. 21 Aluminum smelting plant Construction of a plant for aluminum smelting with capacity to produce 500 kton/year of primary aluminum using imported alumina. Production will be primarily focused on exports, especially to the region (South America). C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Aluminum Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study is being prepared by Hatch. It is expected to be completed in May 2015. • Special rate for electricity generation at low cost. • South America will become a net importer of primary aluminum in the coming years. • Privileged location which favors low-cost transport: alumina may be imported from Brazil/Jamaica, and exports will be focused on South America. • Potential bilateral agreements between Ecuador and its target market (South America). 2,500 MMUSD ✓Estimated operation start date: 2021. 22 MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. Copper smelting and refining plant Construction of a plant for copper smelting and refining with production capacity of ~280 kton/year of copper cathodes BASIC INDUSTRIES Investment catalogue in Strategic Sectors 2015-2017 using ~1000 kton of imported and/or local concentrate. Focus is on Asiatic markets, especially China. C O L O M B I A 0 50 100 km 0º P A C I F I C O C E A N Quito P E R U GUAYAS Shipyard Copper Posorja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓Pre-feasibility study carried out by SNC-Lavalin and completed in December 2014. • Privileged location to export refined copper to China and import concentrated copper from Chile and/or Peru. • Future integration with locally produced concentrated copper. • Potential to increase revenues by exporting sulfuric acid byproduct to Chile at competitive prices. • Competitiveness factors at regional and global scale (competitive electricity and labor costs). 2,000 MMUSD ✓Development of feasibility study should begin in April 2015. ✓Estimated operation start date: 2018 for smelting, 2019 for refining. MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. 23 Pulp plant origin and imported chemicals. The target market is pulp export to high-demand markets (especially China and Europe). Construction of a mixed plant for the production of BHKP and BSKP with capacity to produce 1,000 kton/year using wood pulp (eucalyptus and pine) of local Esmeraldas 0 50 Tulcán C O L O M B I A 100 km Ibarra 0º Santo Domingo Latacunga Portoviejo Francisco de Orellana Tena Ambato Guaranda O C E A N P A C I F I C Nueva Loja Quito Babahoyo Riobamba Puyo Guayaquil Santa Elena Macas Azogues Cuenca P E R U Machala Loja PROJECT STATUS: COMPETITIVENESS: ESTIMATED INVESTMENT: ✓The study of the Indicator of Annual Average Growth and availability of land is in process and is being carried out by STCP. It is expected to be completed in July 2015. • Climate and geography are suitable for planting eucalyptus and pine. • Availability of land suitable for forests. • Strategic location for exporting to various regions, mainly China. • Ecuador can achieve very quickly the automation of crops to increase productivity. • Competitive raw material costs. • Low internal logistic costs. • High potential for integration with the development of the paper industry to replace imports. 2,800 MMUSD ✓Pre-feasibility study should start in August 2015. ✓Estimated operation start date: 2024. 24 Zamora MODALITY OF INVESTMENT: • Direct Investment. • Strategic public-private alliances. MINING Mining sector projects Mining sector Ecuador is a country with great geological wealth throughout its territory. For many years, dozens of leading companies have performed research activities in Ecuador and their explorations have discovered large gold and copper mining projects in the provinces of Azuay, Zamora Chinchipe, Morona Santiago and Imbabura, among others. begin operations, and others are already in advanced stages of exploration. This catalogue includes the ENAMI projects that need investments through public-private alliances. Ecuador has granted mining concessions to private companies whose projects are under prospection, exploration, and some close to come into production. In this catalogue are include projects of the private sector that need investments in order to be developed. 1.Direct investment 2.Strategic public-private alliances Also, the decision to carry conduct biddings of new mining areas has been taken in order to delegate, through concession, these areas to companies that ensure the use of the best exploration and exploitation practices of areas that have been considered of interest due to their important geological potential. Auction processes can be performed by request of the government or by request of an interested party, which is why financial bids shall not be rated, only the bidder with regard to their experience and financial capacity, as well as the technical and environmental proposal they submit. • • • • • • In 2010 the Ecuadorian Government created the Empresa Nacional Minera, ENAMI (National Mining Company) that has projects in prospection and exploration stages. Most of them have all legal permits to Two main ways to participate in these projects have been considered: Mining projects in Ecuador have several competitive advantages for potential investors: High mineral recovery rates (very good mining laws) Low stripping ratio (proximity of mineral) Access to water Sufficient provision of electricity at attractive costs Modern infrastructure in roads, ports and airports Monetary stability Besides the natural advantages of projects, the Ecuadorian State accompanies mining development in a responsible manner, ensuring productive development and providing incentives: • Tax stability and incentives • Accelerated depreciation of the machinery used • Clear and established rules based on Ecuadorian legislation MINING SECTOR PROJECTS Nº. Project name Location Stage Mineral (province) Investment amount (millions of USD) 1 Llurimagua Imbabura Advanced exploration Copper-molybdenum 2 Tola Norte Esmeraldas Advanced exploration Ferrous-titaniferous sand 3 Nanguipa Zamora Chinchipe Initial exploration Gold and copper 19 4 El Torneado Bolívar Advanced exploration Copper and molybdenum 18 5 La Bonita Sucumbíos Initial exploration Gold and copper 14 6 Telimbela Bolívar Advanced exploration Copper and molybdenum 14 7 Pacto Pichincha Initial exploration Gold and polymetals 7 8 Sangola Zamora Chinchipe Initial exploration Gold and copper 6 TOTAL 29 26 133 Source: ENAMI EP 26 Investment catalogue in Strategic Sectors 2015-2017 Llurimagua mining project Location: Province of Imbabura MINING Advanced exploration of copper and molybdenum within an area of 4,839 Ha. COLOMBIA 0º PACIFIC OCEAN QUITO Guayaquil CARCHI P E R U 0 50 ESMERALDAS 100 km IMBABURA COTACACHI Ibarra Llurimagua PICHINCHA PROJECT STATUS: ESTIMATED INVESTMENT: ✓Environmental license. 29 MMUSD ✓First drilling phase 15,000 m. ✓ The drilling campaign is scheduled to start on March 15th, 2015. POTENTIAL: SUCUMBIOS GEOLOGICAL MODEL: MODALITY OF INVESTMENT: • Direct investment. • Strategic public-private alliances. • Inferred resource: 318 million tons of minerals. • Copper grade: 0.7% • Molybdenum grade: 0.026% • Project lifetime: 30 years. (Magnified image in enclosed CD) 27 Tola Norte mining project Advanced exploration of Ferro-titaniferous sand (beach sand), within an area of 4,648 Ha. Location: Province of Esmeraldas VALDEZ (LIMONES) PACIFIC OCEAN TOLA NORTE LA TOLA TAMBILLO LAS PEÑAS BORBÓN COLOMBIA PA C I F I C O C E A N CARCHI COLOMBIA Esmeraldas 0º QUITO PACIFIC OCEAN ESMERALDAS MANABÍ IMBABURA Guayaquil P E R U 0 50 100 km PROJECT STATUS: POTENTIAL: ✓Environmental license. • Geological potential: 70 MMT (VHM: South American Iron and Steel. SAIS 2005-2010). ✓First drilling phase (completed). ✓ Analysis and interpretation of samples obtained for the determination of inferred resources (February 2015). • Project lifetime: 35 years. ✓Second drilling phase scheduled (April 2015). 26 MMUSD ✓ Third drilling phase scheduled (2016). 28 PICHINCHA SANTO DOMINGO DE LOS TSÁCHILAS GEOLOGICAL MODEL: ESTIMATED INVESTMENT: MODALITY OF INVESTMENT: • Direct investment. • Strategic public-private alliances. (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Nanguipa mining project copper within an area of 5,066 Ha. Initial exploration until identifying resources that make it feasible the conduction of a pre-feasibility mining study in order to quantify probable reserves of gold and MINING Location: Province of Zamora Chinchipe A Z U AY COLOMBIA MORONA SANTIAGO 0º PACIFIC OCEAN QUITO ZAMORA CHINCHIPE Guayaquil P E R U 0 50 100 km Zamora LOJA CENTINELA DEL CÓNDOR NANGUIPA1 ZAMORA NANGUIPA NANGARITZA PERU PROJECT STATUS: ESTIMATED INVESTMENT: ✓Initial exploration plan (under development). 19 MMUSD ✓Environmental license (being processed). MODALITY OF INVESTMENT: POTENTIAL: GEOLOGICAL MODEL: • Direct investment. • Strategic public-private alliances. • Geological potential: 300 MMT with 0.5% copper grade (CODELCO 2012) (Magnified image in enclosed CD) 29 El Torneado mining project Advanced exploration of copper and molybdenum mineral resources within an area of approximately 17,878 Ha. Location: Province of Bolívar C O T O PA X I TUNGURAHUA LOS RIOS GUARANDA Guaranda COLOMBIA CALUMA 0º QUITO San Antonio PACIFIC OCEAN CHIMBO Cerro Gualazay Grande Guayaquil El Cristal Chicaloma P E R U 0 50 CHIMBORAZO 100 km G U AYA S BOLIVAR PROJECT STATUS: GEOLOGICAL MODEL: ✓Environmental license granted ✓Identification of three zones with high mineralization potential and high values of copper and molybdenum ✓Implementation of the first drilling stage of 500 m divided into 3 drillings in anomalies for massive sulphide sulphide. POTENTIAL: • Inferred resources: 200 MMT • Project lifetime: 25 to 30 years ESTIMATED INVESTMENT: 18 MMUSD MODALITY OF INVESTMENT: • Direct investment • Strategic public-private alliances (Magnified image in enclosed CD) 30 Investment catalogue in Strategic Sectors 2015-2017 La Bonita mining project Initial exploration of gold and copper to determine the mineral resources existing within an area of 13,610 Ha. Location: Province of Sucumbíos 0º QUITO PACIFIC OCEAN La Bonita Guayaquil SUCUMBIOS MINING COLOMBIA COLOMBIA Rosa Florida P E R U 0 50 100 km La Chispa CASCALES CARCHI IMBABURA COLOMBIA SUCUMBIOS PICHINCHA Nueva Loja SUCUMBIOS NAPO ORELLANA PERU PROJECT STATUS: ✓Environmental license (being processed) ✓Geological, structural and hydrothermal alterations mapping Geochemistry of stream sedi✓ ments, rocks and soils.ils Airborne geophysical ✓ (scheduled) studies POTENTIAL: • Resources (under determination process): geochemistry of stream sediments indicates presence of coarse gold panning • Possible continuation of tjhe porphyry copper system of Mocoa Colombia • Large areas of hydrothermal alteration (12 km2) GEOLOGICAL MODEL: ESTIMATED INVESTMENT: 14 MMUSD MODALITY OF INVESTMENT: • Direct investment • Strategic public-private alliances (Magnified image in enclosed CD) 31 Telimbela mining project Advanced exploration of copper and molybdenum to determine mineral resources existing within an area of 4,033 Ha. Location: Province of Bolívar C O T O PA X I TUNGURAHUA LOS RIOS GUARANDA Guaranda CALUMA Telimbela COLOMBIA CHIMBO 0º PACIFIC OCEAN QUITO B O L I VA R Guayaquil P E R U 0 50 G U AYA S 100 km PROJECT STATUS: GEOLOGICAL MODEL: ✓Environmental license granted POTENTIAL: ✓Soil samples reflect abnormalities in: • Geological potential: 250 MTM • Close to South Curimpamba project, with 2.33 & Cu and 2.99 g/t gold. • Project lifetime: 23 years ✓ North Telimbela: 0.4 g/t Au, 5.8 g/t Ag and 1.65% Cu. (400 x 1200m) ✓ Center Telimbela: 0.2 g/t Au; 1.6 g/t Ag and 1.60% Cu (500 x 300m) ESTIMATED INVESTMENT: ✓South Telimbela: 0.05% Cu 15 MMUSD. ✓4000n drilling in Ashuaca sector MODALITY OF INVESTMENT: • Direct investment. • Strategic public-private alliances. 32 CHIMBORAZO (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Pacto mining project Initial exploration of gold and polymetals to determine the mineral resources that exist within an area of 4,645 Ha. Location: Province of Pichincha ESMERALDAS MINING IMBABURA SUCUMBIOS DISTRICT METROPOLITAN QUITO Quito SANTO DOMINGO DE LOS TSÁCHILAS NAPO PICHINCHA CANTÓN QUITO GUALEA COLOMBIA 0º C O T O PA X I QUITO URCUTAMBO COD: 403009 2351 Ha PACIFIC OCEAN PACTO Guayaquil INGAPI COD: 403008 2394 Ha P E R U 0 50 100 km PROJECT STATUS: POTENTIAL: ✓Environmental license (being processed) • Geological Potential: 250,000 ounces of gold ✓Determination of three areas of exploration interest within the Urcutambo concession ESTIMATED INVESTMENT: ✓Development of drilling plan of 1,800m in “El Viudo” sector. GEOLOGICAL MODEL: 7 MMUSD MODALITY OF INVESTMENT: (Magnified image in enclosed CD) • Direct investment. • Strategic public-private alliances. 33 Sangola mining project Initial exploration of gold and copper to determine mineral resources that exist within an area of 6,507 hectares. A Z U AY Location: Province of Zamora Chinchipe MORONA SANTIAGO ZAMORA CHINCHIPE PERU Zamora LOJA COLOMBIA 0º PACIFIC OCEAN QUITO Guayaquil P E R U Palma Chorocoto PROJECT STATUS: ✓Initial exploration plan (being developed). 50 100 km Karina 6 Rebeca • Located in the geological strip of Fruta del Norte and Mirador projects. ✓Environmental license (being processed). ESTIMATED INVESTMENT: POTENTIAL: MODALITY OF INVESTMENT: • 3 main veins with a confirmed and sampled area with a longitude of 250m to 300m, and with tenors ranging from 4.7 to 102g/t Au. • Polymetallic veined deposit of low sulphidationt. 34 0 GEOLOGICAL MODEL: 6 MMUSD. • Direct investment. • Strategic public-private alliances. (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Mining blocks for bidding Province Esmeraldas Location Reference coordinate 1 1 A 23.724 2 1 B 24.278 Esmeraldas Lat: 0.989 N; Long: 78.730 W Gold 3 1 C 17.551 Esmeraldas Lat: 0.900 N; Long: 78.860 W Gold 4 2 A 6.612 Carchi Lat: 0.807 N; Long: 78.244 W Gold and manganese 5 2 B 8.853 Imbabura Lat: 0.679 N; Long: 78.346 W Gold 6 3 A 20.400 Esmeraldas Lat: 0.460 N; Long: 79.050 W Platinum, cobalt, manganese and tellurium 7 3 B 4.500 Imbabura Lat: 0.330 N; Long: 78.760 W Gold 8 4 Lat: 0.301 S; Long: 78.900 W Gold, silver, copper, lead and zinc 3.300 Santo Domingo de los Tsachilas 9 5 Lat: 1.073 N; Long: 78.63 W Potential (occurrences) Gold 33.500 Napo Lat: 0.896 S; Long: 77.80 W Gold 10 6 A 16.000 Cotopaxi Lat: 1.063 S; Long: 79.19 W Gold and copper 11 6 B 39.500 Bolívar Lat: 1.312 S; Long: 79.08 W Gold and copper 12 6 C 5.304 Los Ríos Lat: 1.580 S; Long: 79.29 W Gold and copper 13 7 37.100 Chimborazo Lat: 1.940 S; Long: 78.49 W Zinc, copper and silver 14 8 10.890 Cañar Lat: 2.540 S; Long: 79.12 W Gold, silver and zinc 15 9 28.175 Morona Santiago Lat: 3.240 S; Long: 78.83 W Gold, magnetite and pyrite and Azuay 16 10 A 9.562 El Oro Lat: 3.37 S; Long: 79.540 W Gold, zinc, cobalt and tellurium 17 10 B 7.310 El Oro Lat: 3.54 S; Long: 79.620 W Gold and polymetals18 11 A MINING Nº.Name of Area the block (Ha) 9.350 Zamora Chinchipe Lat: 3.84 S; Long: 78.830 W Gold and silver 19 11 B 5.000 Zamora Chinchipe Lat: 3.93 S; Long: 78.900 W Gold and silver 20 12 A 31.160 Loja Lat: 3.92 S; Long: 79.780 W Gold, lead and antimony 21 12 B 12.680 Loja Lat: 4.17 S; Long: 79.790 W Gold, silver, lead, zinc and molybdenum 22 12 C 5.000 Loja Lat: 4.28 S; Long: 79.510 W 23 13 A 9.850 Zamora Chinchipe Lat: 4.65 S; Long: 78.920 W Gold, copper, lead and zinc 24 13 B 22.425 Zamora Chinchipe Lat: 4.82 S; Long: 79.010 W Gold 25 13 C 39.777 Zamora Chinchipe Lat: 4.80 S; Long: 79.210 W Molybdenum, thorium, barium, Gold, copper and lead uranium, cerium, tungsten, niobium, tin and lead Source: Instituto Nacional de Investigación Geológico Minero Metalúrgico, INIGEMM (National Institute for Geological, Mineral and Metallurgical Research) 35 Block 1A This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude varies from 50 to 500 meters above sea level. The area of the block is 23,724 Ha. Location: Province of Esmeraldas Coordinates: Lat: 1.073 N Reference GCS: Long: 78.63 W COLOMBIA SAN LORENZO PA C I F I C O C E A N Block 1A CARCHI Esmeraldas ESMERALDAS IMBABURA MANABÍ COLOMBIA 0º QUITO PACIFIC OCEAN PICHINCHA Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Occurrences of gold in alluvial deposits and Quaternary age terraces. The block is located on rocky outcrops that are part of a forearc sedimentary basin of the Tertiary age, corresponding to the Borbon and Canoa formations, covered by San Tadeo formation and estuarine marine clays. MODALITY OF INVESTMENT: • Direct investment. 50 100 km GEOLOGICAL MODEL: (Magnified image in enclosed CD) 36 Block 1B This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude varies from 50 to 500 meters above sea level. The area of the block is 17,551 Ha. Location: Province of Esmeraldas Coordinates: Lat: 0.989 N Reference GCS: Long: 78.73 W MINING Investment catalogue in Strategic Sectors 2015-2017 COLOMBIA SAN LORENZO PA C I F I C O C E A N CARCHI Block 1B Esmeraldas ESMERALDAS IMBABURA MANABÍ COLOMBIA 0º QUITO PACIFIC OCEAN PICHINCHA Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Occurrences of gold in alluvial deposits and Quaternary age terraces. In the block outcrop sedimentary rocks of the tertiary basin corresponding to Zapallo, Playa Rica, Angostura, Onzole and Borbón formations; estuarine marine clays cover the area. MODALITY OF INVESTMENT: • Direct investment. 50 100 km GEOLOGICAL MODEL: (Magnified image in enclosed CD) 37 Block 1C This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude varies from 50 to 500 meters above sea level. The area of the block is 17,551 Ha. Location: Province of Esmeraldas Coordinates: Lat: 0.90 N Reference GCS: Long: 78.86 W COLOMBIA SAN LORENZO PA C I F I C O C E A N CARCHI Block 1C Esmeraldas ELOY ALFARO ESMERALDAS IMBABURA MANABÍ COLOMBIA 0º QUITO PACIFIC OCEAN PICHINCHA Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Occurrences of gold in alluvial deposits and Quaternary age terraces. In the block outcrop sedimentary rocks of the tertiary basin corresponding to Zapallo, Playa Rica, Angostura, Onzole and Borbón formations; estuarine marine clays cover the area. MODALITY OF INVESTMENT: • Direct investment. 50 100 km GEOLOGICAL MODEL: (Magnified image in enclosed CD) 38 Investment catalogue in Strategic Sectors 2015-2017 Block 2A Location: Coordinates: Reference GCS: Province of Carchi Lat: 0.807 N Long: 78.244 W MINING This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude varies from 50 to 500 meters above sea level. The area of the block is 6,612 Ha. ESMERALDAS COLOMBIA MIRA Tulcán Block 2A CARCHI COLOMBIA 0º QUITO PACIFIC OCEAN SUCUMBIOS Guayaquil PICHINCHA P E R U 0 50 100 km POTENTIAL: BLOCK GEOLOGY: GEOLOGICAL MODEL: Traces of gold and manganese are found in samples of active river sediments. This block is adjacent to Cascabel project of the CORNERSTONE SOLDGOLD Company. Bedrock is made up, to the west, by volcanic rocks that are part of an islands arc of tholeiitic affinity which are included in the Naranjal Unit of the Cretaceous age and east by sedimentary rocks of the Cretaceous age that are part of the Pilatón unit. To the west, bedrock is in tectonic contact with Eocene sedimentary rocks of El Laurel unit. Sequences are covered by continental volcanic rocks of calcalkaline affinity of the San Juan de Lachas unit of the Oligocene. (Magnified image in enclosed CD) MODALITY OF INVESTMENT: • Direct investment. 39 Block 2B This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude is 500 meters above sea level. The area of the block is 8,853 Ha. Location: Province of Imbabura Coordinates: Lat: 0.679 N Reference GCS: Long: 78.346 W COLOMBIA 0º QUITO PACIFIC OCEAN IBARRA Guayaquil CARCHI Block 2B P E R U ESMERALDAS 0 50 100 km SAN MIGUEL DE URCUQUÍ IMBABURA Ibarra PICHINCHA SUCUMBIOS POTENTIAL: BLOCK GEOLOGY: Traces of gold are found in samples of active river sediments. This block is adjacent to Cascabel project of the CORNERSTONE – SOLDGOLD Company. Bedrock is made up, to the west, by volcanic rocks that are part of an islands arc of tholeiitic affinity which are included in the Naranjal Unit of the Cretaceous age and east by sedimentary rocks of the Cretaceous age that are part of Pilatón unit. Sequences are overlain by Eocene sedimentary rocks of El Tortugo and El Laurel units to the west and to the east, respectively. Sequences are covered by continental volcanic rocks of calc-alkaline affinity of the San Juan de Lachas unit of the Oligocene. Pluton of La Merced de Buenos Aires, of granodiorite and diorite composition from the Miocene, intrudes the pre-Oligocene sequences. MODALITY OF INVESTMENT: • Direct investment. 40 GEOLOGICAL MODEL: (Magnified image in enclosed CD) Block 3A This block is located in the foothills of the Cordillera Occidental Range, with heights not higher than 800 meters above sea level. The area of the block is 20,400 Ha. Location: Province of Esmeraldas Coordinates: Lat: 0.46 N Reference GCS: Long: 79.05 W MINING Investment catalogue in Strategic Sectors 2015-2017 COLOMBIA PA C I F I C O C E A N CARCHI Esmeraldas ELOY ALFARO ESMERALDAS MANABÍ IMBABURA Block 3A QUININDÉ COLOMBIA 0º PACIFIC OCEAN QUITO Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Traces of platinum, cobalt, manganese and tellurium are found in samples of active river sediments. This block is located east of Llurimagua project of the ENAMI and north of El Corazón project. The region bedrock is made up by mafic and ultramafic rocks included in the Naranjal Unit which is part of the Caribe plateau, overlain by marine sedimentary rocks of the Colorado Unit and volcanoclastic rocks of Río Desgracia Unit. A gabbroic intrusive is placed in the cretaceous rocks. The area is crossed by the Canandé fault. MODALITY OF INVESTMENT: • Direct investment. 50 100 km GEOLOGICAL MODEL: (Magnified image in enclosed CD) 41 Block 3B This block is located in the foothills of the Cordillera Occidental Range at an average altitude of 200 meters above sea level. The area of the block is 4,500 Ha. Location: Province of Imbabura Coordinates: Lat: 0.33 S Reference GCS: Long: 78.76 W COLOMBIA 0º PACIFIC OCEAN QUITO Guayaquil P E R U 0 50 100 km ESMERALDAS CARCHI IMBABURA Block 3B Ibarra COTACACHI PICHINCHA SUCUMBIOS POTENTIAL: BLOCK GEOLOGY: Traces of gold are found in samples of active river sediments in the drains located at the southwest of the block. The block is located between El Corazón (Au) and Llurimagua (CuMo) mining projects. The region bedrock is made up by mafic and ultramafic rocks included in the Naranjal Unit, which is part of the Caribe plateau, overlain by marine sedimentary rocks of El Tortugo Unit from the Eocene. In the east area, Apuela batholith rocks intrude the pre-Oligocene sequences. The area is crossed by the Toachi fault. MODALITY OF INVESTMENT: • Direct investment. 42 GEOLOGICAL MODEL: (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Block 4 This block is located in the Cordillera Occidental Range at an average altitude of 1,500 meters above sea level. The area of the block is 3,300 Ha. MINING ESMERALDAS Location: Province of Santo Domingo de los Tsáchilas Coordinates: Lat: 0.301 S Reference GCS: Long: 78.90 W PICHINCHA Block 4 Santo Domingo ALLURIQUÍN SANTO DOMINGO DE LOS TSÁCHILAS MANABÍ COLOMBIA 0º C O T O PA X I PACIFIC OCEAN QUITO Guayaquil P E R U 0 50 100 km LOS RIOS POTENTIAL: BLOCK GEOLOGY: Two traces of gold, silver, copper, lead and zinc have been found in La Palma and Dos Ríos areas. The block is located northeast of La Plata mine (VMS), which is currently inactive. The bedrock is constituted by marine sedimentary rocks included in Malaute and Pilatón units of the Cretaceous age. The western part of the area has volcanic rocks which are part of an arc of islands of tholeiitic affinity included in the Macuchi Unit. Eocene intrusive bodies elongated with north-south direction and of diorite composition intrude the rocks of the Cretaceous units. Quaternary terraces cover partially the above mentioned rocks in the south of the block. A branch of the Toachi regional fault is the contact between the rocks of the Macuchi and Mulaute units. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 43 Block 5 This block is located in the foothills of the Real Oriental range at an average altitude of 1,000 meters above sea level. The area of the block is 33,500 Ha. Location: Coordinates: Reference GCS: Province of Napo Lat: 0.896 S Long: 77.80 W COLOMBIA 0º SUCUMBIOS PICHINCHA PACIFIC OCEAN QUITO Guayaquil P E R U 0 50 NAPO 100 km ORELLANA ARCHIDONA Block 5 TENA Tena C O T O PA X I PA S TA Z A TUNGURAHUA POTENTIAL: BLOCK GEOLOGY: Indications of alluvial gold in three rivers that cross the block. Adjacent to the areas of Terra Earth Resources S.A. The oldest sequence is the Misahuallí Unit of the Jurassic age, constituted mainly by calc-alkaline volcanic rocks of continental arc. Overlaying incongruously in the Misahuallí Unit we can find the Hollín and Napo marine sedimentary formations and the Tena formation of the upper Cretaceous age of continental origin. Cenozoic continental sediments cover sequences in the western sector. In the northwest of the area, Abitagua granite from the Jurassic age is exposed. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 44 Investment catalogue in Strategic Sectors 2015-2017 Block 6A Location: Province of Cotopaxi Coordinates: Lat: 1.063 S Reference GCS: Long: 79.19 W MINING This block is located in the Cordillera Occidental Range, southwest of the province of Cotopaxi at an average altitude of 1,500 meters above sea level. The area of the block is 16,000 Ha. COLOMBIA 0º PACIFIC OCEAN QUITO SANTO DOMINGO DE LOS TSACHILAS Guayaquil PICHINCHA P E R U 0 50 100 km LOS RIOS Latacunga C O T O PA X I NAPO Block 6A PANGUA TUNGURAHUA B O L I VA R POTENTIAL: BLOCK GEOLOGY: Traces of gold and copper are found in samples of active river sediments collected in the northeast and southwest of Block 6A. This block is made up mostly by volcanic, volcanoclastic and volcanosedimentary rocks, predominantly of mafic composition and tholeiitic affinity included in the Macuchi Unit, which is part of an islands arc that developed in the Paleocene-Eocene. By geological correlation, it is established that bedrock is the Caribbean Plateau. This sequence is intruded by plutons of quartz dioritic, dioritic and tonalitic composition, of calc-alkaline affinity. Several alluvial deposits and terraces cover the above mentioned sequences, south-west of the area. Block 6A is located southwest of the old Macuchi (VMS) mine which was exploited in the last century, and near Curipamba projects of Curimining S.A. MODALITY OF INVESTMENT: • Direct investment GEOLOGICAL MODEL: (Magnified image in enclosed CD) 45 Block 6B This block is located in the Cordillera Occidental Range, north of the province of Bolívar, at an average altitude of 2,500 meters above sea level. The area of the block is 39,500 Ha. Location: Coordinates: Reference GCS: Province of Bolivar Lat: 1.312 S Long: 79.08 W C O T O PA X I TUNGURAHUA Block 6B LOS RIOS GUARANDA Guaranda BOLIVAR COLOMBIA 0º PACIFIC OCEAN QUITO CHIMBORAZO G U AYA S Guayaquil P E R U 0 50 100 km POTENTIAL: BLOCK GEOLOGY: Several areas of hydrothermal alteration and places with pyrite and chalcopyrite mineralization. Occurrences of copper and gold. Located near Curipamba Projects of Curimining S.A. This block is constituted by volcanic rocks included in the Macuchi Unit and vocanosedimentary rocks of the Arrayanes Unit. In the southeastern part, sequences are covered by volcanosedimentary rocks of the Zumbahua Group. Several intrusions of Miocene age of variable composition (quartz dioritic, dioritic and tonalitic), including plutons of El Corazón and Chazo Juan, intrude the above described sequences. MODALITY OF INVESTMENT: Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 46 Investment catalogue in Strategic Sectors 2015-2017 Block 6C This block is located in the west flank of the Cordillera Occidental Range, east of the province of Los Ríos, at an average altitude of 700 meters above sea level. The area of the block is 5,304 Ha. Province of Los Ríos Lat: 1.580 S Long: 79.29 W MINING Location: Coordinates: Reference GCS: MANABÍ COLOMBIA C O T O PA X I 0º G U AYA S PACIFIC OCEAN QUITO Quevedo Guayaquil P E R U 0 50 100 km LOS RIOS B O L I VA R Block 6C URDANETA POTENTIAL: BLOCK GEOLOGY: Several areas of hydrothermal alteration and places with pyrite and chalcopyrite mineralization. Occurrences of copper and gold. Located northeast of Telimbela project of the ENAMI. The bedrock is constituted by volcanic rocks of Macuchi Unit. An intrusive of the Oligocene-Miocene age of granodioritic to tonalitic composition intrudes the paleoscenic sequences which make up most of the northwestern part of the area. MODALITY OF INVESTMENT: GEOLOGICAL MODEL: • Direct investment. (Magnified image in enclosed CD) 47 Block 7 This block is located in the central area of the Real Oriental range in Sacraurcu sector, northeast of the Province of Chimborazo, at an average altitude of 3,500 meters above sea level. The area of the block is 37,100 Ha. Location: Province of Chimborazo Coordinates: Lat: 1.94 S Reference GCS: Long: 78.49 W TUNGURAHUA RIOBAMBA COLOMBIA 0º B O L I VA R Riobamba QUITO PACIFIC OCEAN CHAMBO Guayaquil Block 7 P E R U 0 50 100 km G U AYA S MORONA SANTIAGO CHIMBORAZO GUAMOTE CAÑAR POTENTIAL: BLOCK GEOLOGY: Several signs of volcanogenic massive sulphides with occurrences of zinc, copper and silver. Adjacent to the Yurac Rumi project of the CONMINAS S.A. Company. The oldest rocks are included in the Alao-Paute Unit of the Jurassic age, interpreted as an arc of islands located west of the rocks that form the core of the metamorphic belt of the Cordillera Real. In the western part of the block, in tectonic contact, are the metaturbidites of Maguazo Unit which are also from the Jurassic age. On the western edge appears the Peltetec Unit consisting of mafic and ultramafic rocks which are part of an ophiolitic complex. Sequences are intruded by Alao pluton of the Tertiary age. The southern region is covered by Tertiary and Quaternary volcanic rocks. MODALITY OF INVESTMENT: • Direct investment. 48 GEOLOGICAL MODEL: (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Block 8 This block is located in the Cordillera Occidental Range, in the center of the province of Cañar at an average altitude of 2,400 meters. The area of the block is 10,890 Ha. Province of Cañar Lat: 2.54 S Long: 79.12 W MINING Location: Coordinates: Reference GCS: G U AYA S CHIMBORAZO CAÑAR SUSCAL EL TAMBO Block 8 CAÑAR Azogues MORONA SANTIAGO COLOMBIA A Z U AY 0º PACIFIC OCEAN QUITO Guayaquil P E R U 0 50 100 km POTENTIAL: BLOCK GEOLOGY: Areas with hydrothermal alteration with pyrite mineralization and occurrences of zinc, silver and gold. Adjacent to ELIPE and AMEGOLD S.A. projects. The oldest sequences are the subaerial volcanic and intermediate calc-alkaline to acid rocks of the Saraguro Group, which include the Ocaña formation, overlain by the Tomebamba Unit, the Chanlud and Cerro Caucay formations whose age ranges from the Late Middle Eocene to the Early Miocene. There is a predominance of andesitic lavas interbedded with volcanic sediments and andesitic massive tuffs with lithic lapilli, produced by ash flows. Rhyolitic domes intrude into the Chanlud formation. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 49 Block 9 This block is located on the western flank of the Cordillera Real range, southeast of the province of Azuay and on the border with the province of Morona Santiago at an average altitude of 2,900 meters above sea level. The area of the block is 28,175 Ha. Location: Coordinates: Reference GCS: Provinces of Morona Santiago and Azuay Lat: 3.24 S Long: 78.83 W COLOMBIA TUNGURAHA 0º PACIFIC OCEAN QUITO Guayaquil PA S TA Z A P E R U 0 50 CHIMBORAZO 100 km Macas CAÑAR MORONA SANTIAGO G U AYA S Cuenca A Z U AY NABÓN PERU Block 9 GUALAQUIZA EL ORO LOJA ZAMORA CHINCHIPE POTENTIAL: BLOCK GEOLOGY: Several rivers with presence of alluvial gold, in addition to gold, magnetite and pyrite mineralization. Traces of zinc, arsenic, antimony and barium in samples of river sediments and, in heavy sediments, tungsten, tin, cerium, yttrium and chromium. This block is adjacent to the projects of TERRASOURCES S.A. The bedrock is made up by metamorphic rocks of the Chiguinda unit. Regarding lithology, bedrock includes low-grade metamorphic rocks, interpreted as a part of an intracratonic basic and correlated with Carboniferous and Devonian rocks of the Peru – Bolivia Depression. To the west there is an outcrop of Type S metagranites of the Tres Lagunas unit. Contact between the two units is tectonic. Minor intrusive bodies of the Tertiary age are located in the pre-Cretaceous units. Units are covered by tertiary continental volcanic rocks. MODALITY OF INVESTMENT: • Direct investment. 50 GEOLOGICAL MODEL: (Magnified image in enclosed CD) Investment catalogue in Strategic Sectors 2015-2017 Block 10A Location: Coordinates: Reference GCS: Province of El Oro Lat: 3.37 S Long: 79.54 W MINING This block is located south of the Cordillera Occidental Range, northeast of the province of El Oro, at an average altitude of 1,400 meters above sea level. The area of the block is 9,562 Ha. COLOMBIA 0º PACIFIC OCEAN QUITO PA C I F I C O C E A N Guayaquil P E R U Machala A Z U AY 0 50 100 km Block 10A CHILLA EL ORO ZARUMA PERU LOJA POTENTIAL: BLOCK GEOLOGY: Occurrences of gold, zinc, cobalt and tellurium. Close to the San Gerardo mining areas. The block is located southwest of the Cordillera Occidental range, bedrock is made of rocks of El Oro Metamorphic Complex which includes rocks of the Piedras Maphic Complex and of the Moromoro Granitoyd Complex of the Triassic age, overlaid incongruously by rocks related to the Oligocene volcanism of the Saraguro Group from the Middle Late Eocene to the Early Miocene, and volcanosedimentary rocks of the Santa Isabel formation. Rocks of granodioritic composition from the Miocene intrude the metamorphic, volcanic and sedimentary rocks. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 51 Block 10B This block is located on the southwest of the Cordillera Occidental Range, east of the province of El Oro and at an average altitude of 2,400 meters above sea level. The area of the block is 7,310 Ha. Location: Coordinates: Reference GCS: Province of El Oro Lat: 3.54 S Long: 79.62 W COLOMBIA PA C I F I C O C E A N 0º PACIFIC OCEAN QUITO Machala Guayaquil P E R U 0 50 A Z U AY 100 km CHILLA EL ORO ATAHUALPA PERU Block 10B ZARUMA LOJA POTENTIAL: BLOCK GEOLOGY: Occurrences of metallic minerals of gold and polymetals. There is also a mesothermal mineralization area with presence of tourmaline, quartz, sericite, epidote and arsenopyrite. Traces of gold, zinc, cobalt-mercury-antimony-lead-tellurium and arsenic in samples of active stream sediments. The bedrock is made up by rocks of El Oro Metamorphic Complex which includes rocks of the Piedras Maphic Complex and of the Moromoro Granitoyd Complex of the Triassic age, overlaid incongruously by rocks related to the Oligocene volcanism of the Saraguro Group from the Middle Late Eocene to the Early Miocene. Rocks of granodioritic composition from the Miocene are largely spread and intrude the metamorphic and volcanic rocks of the Saraguro Group. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 52 Investment catalogue in Strategic Sectors 2015-2017 Block 11A This block is located south of the Cordillera Real range in the Pan de Azúcar Mountain, at an average altitude of 1,800 meters above sea level. The area of the block is 9,350 Ha. MINING Location: Province of Zamora Chinchipe Coordinates: Lat: 3.84 S Reference GCS: Long: 78.83 W MORONA SANTIAGO A Z U AY CHILLA Block 11A ZAMORA CENTINELA DEL CÓNDOR Zamora LOJA COLOMBIA PACIFIC ZAMORA CHINCHIPE 0º QUITO OCEAN PERU Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Occurrences of gold and silver. This block is located west of the Fruta del Norte project (AURELIAN S.A.). In this sub-Andean belt appears the Misahualli Unit, made up by continental calc-alkaline lavas, intruded by the Zamora batholith which is made up by granodiorites and diorites. MODALITY OF INVESTMENT: 50 100 km GEOLOGICAL MODEL: • Direct investment. (Magnified image in enclosed CD) 53 Block 11B This block is located south of the Cordillera Real range in San José, Cumbaratza and La Ramada hills, at an average altitude of 1,600 meters above sea level. The area of the block is 5,000 Ha. Location: Province of Zamora Chinchipe Coordinates: Lat: 3.93 S Reference GCS: Long: 78.90 W MORONA SANTIAGO AZUAY Block 11B Zamora ZAMORA LOJA COLOMBIA QUITO OCEAN ZAMORA CHINCHIPE 0º PACIFIC PERU Guayaquil P E R U 0 POTENTIAL: BLOCK GEOLOGY: Occurrences of gold and silver, and also of alluvial gold. The block is located west of the Fruta del Norte project (AURELIAN S.A.) In the sub-Andean belt appear mostly rocks from the Zamora batolite, which are made up by granodiorites and diorites of calc-alkaline affinity. 50 100 km GEOLOGICAL MODEL: MODALITY OF INVESTMENT: • Direct investment. (Magnified image in enclosed CD) 54 Investment catalogue in Strategic Sectors 2015-2017 Block 12 A This block is located in the Cordillera Occidental Range, in the north central part of the Province of Loja, at an average altitude of 1,600 meters above sea level. The area of the block is 31,160 Ha. Province of Loja Lat: 3.92 S Long: 79.78 W MINING Location: Coordinates: Reference GCS: COLOMBIA 0º AZUAY QUITO PACIFIC OCEAN SARAGURO Guayaquil EL ORO P E R U 0 50 100 km CHAGUARPAMBA Block 12A OLMEDO Loja PALTAS LOJA ZAMORA CHINCHIPE PERU POTENTIAL: BLOCK GEOLOGY: Traces of lead, gold and antimony. Adjacent to projects of ELIPE S.A. This block is located in the Alamor Lancones Basin, south of El Oro Metamorphic Complex and is made up by volcanoclastic rocks of the Celica Unit from the Lower Cretaceous Age, overlain by volcanosedimentary rocks of the Alamor Group (Quillosara and Zapotillo units) of the Upper Cretaceous. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 55 Block 12 B This block is located on the Cordillera Occidental Range, in the east central part of the Province of Loja at an average altitude of 1,600 meters above sea level. The area of the block is 12,680 Ha. Location: Coordinates: Reference GCS: COLOMBIA 0º AZUAY QUITO SARAGURO OCEAN PACIFIC Province of Loja Lat: 4.17 S Long: 79.79 W Guayaquil EL ORO P E R U 0 50 100 km Loja ZAMORA CHINCHIPE CELICA Block Block 12B 12B LOJA SOZORANGA PERU POTENTIAL: BLOCK GEOLOGY: Traces of polymetals with gold, silver, lead, zinc and molybdenum. Adjacent to ELIPE S.A. projects. Block 12B begins in Alamor Lancones Basin and is made up by basic effusive and intrusive rocks of tholeiitic affinity of the Punta de Piedra Unit from the Lower Cretaceous age. In most of the area occurs the Tangula batholith of calc-alkaline affinity from the Cretaceous age, which intrudes the volcanic rocks. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 56 Investment catalogue in Strategic Sectors 2015-2017 Block 12 C IThis block is located on the Cordillera Occidental Range, in the central-east part of the Province of Loja at an average altitude of 1,600 meters above sea level. The area of the block is 5,000 Ha. Province of Loja Lat: 4.28 S Long: 79.51 W MINING Location: Coordinates: Reference GCS: COLOMBIA 0º AZUAY QUITO PACIFIC OCEAN SARAGURO Guayaquil EL ORO P E R U 0 50 100 km Loja Block 12B ZAMORA CHINCHIPE LOJA GONZANAMÁ Block 12C CARIAMANGA QUILANGA PERU POTENTIAL: BLOCK GEOLOGY: Traces of polymetals with gold, copper and lead. Adjacent to ELIPE S.A. projects. This block is located in the east edge of the Alamor Lancones Basin and is made up by volcanic and volcanoclastic rocks from the PaleoceneEocene age of the Sacapalca Unit. MODALITY OF INVESTMENT: GEOLOGICAL MODEL: • Direct investment. (Magnified image in enclosed CD) 57 Block 13 A This block is located south of Ecuador in the Cordillera Real range in San Francisco del Vergel sector, at an average altitude of 2,000 meters above sea level. The area of the block is 9,850 Ha. Location: Province of Zamora Chinchipe Coordinates: Lat: 4.65 S Reference GCS: Long: 78.92 W MORONA SANTIAGO A Z U AY COLOMBIA Zamora 0º QUITO PACIFIC ZAMORA CHINCHIPE OCEAN LOJA Guayaquil P E R U NANGARITZA 0 50 100 km PALANDA Block 13A PERU CHINCHIPE POTENTIAL: BLOCK GEOLOGY: Several rivers have traces of alluvial gold, lead, zinc and copper in samples of river sediments, and in heavy sediments there are traces of chrome and vanadium. Close to areas of the National Mining Company andBIRA S.A. Located in the Cordillera del Cóndor range, the block is made up by continental calc-alkaline volcanic rocks of the Misahuallí Unit from the Jurassic age, intruded by granodiorites and diorites of Zamora batholith from the Jurassic age. Sequences are overlain incongruously by sedimentary rocks of the Hollin and Napo formations of the Cretaceous age. Contact between all sequences is tectonic and is represented by La Canela fault of north-south direction. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 58 Block 13 B This block is located on the southern border of Ecuador with Peru in the Chito sector of the Cordillera Real range, at an average altitude of 1,500 meters above sea level. The area of the block is 22,425 Ha. Location: Province of Zamora Chinchipe Coordinates: Lat: 4.82 S Reference GCS: Long: 79.01 W MINING Investment catalogue in Strategic Sectors 2015-2017 MORONA SANTIAGO A Z U AY COLOMBIA Zamora 0º OCEAN PERU PACIFIC LOJA ZAMORA CHINCHIPE QUITO Guayaquil P E R U 0 50 100 km PALANDA Block 13B CHINCHIPE POTENTIAL: BLOCK GEOLOGY: Several rivers with traces of alluvial gold. Adjacent to areas of the National Mining Company and BIRA S.A. Located in the Cordillera del Cóndor range, this block is made up by continental calc-alkaline volcanic rocks of the Misahuallí Unit from the Jurassic age, intruded by granodiorites and diorites of the Zamora batholith from the Jurassic age. Sequences are overlain incongruously by sedimentary rocks of the Hollin and Napo formations from of the Cretaceous age. Contact between all sequences is tectonic and is represented by La Canela fault of north-south direction. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 59 Block 13 C This block is located in the southern border of Ecuador with Peru in Chito sector of the Cordillera Real range, at an average altitude of 1,500 meters above sea level. The area of the block is 39,777 Ha. A Z U AY Location: Province of Zamora Chinchipe Coordinates: Lat: 4,80 S Reference GCS: Long: 79,21 W MORONA SANTIAGO PERU Zamora COLOMBIA 0º QUITO PACIFIC ZAMORA CHINCHIPE OCEAN LOJA Guayaquil P E R U PALANDA 0 50 100 km Block 13C CHINCHIPE POTENTIAL: BLOCK GEOLOGY: Presence of molybdenum, thorium, barium, uranium, cerium, tungsten, niobium, tin and lead has been reported. The block is located in the Cordillera Real range and is mostly made up by metamorphic rocks of the Sabanilla Unit from the Triassic age, which are in tectonic contact with rocks of the Isimanchi Unit and the Zamora batholith, along the Palanda fault of north-south direction. MODALITY OF INVESTMENT: • Direct investment. GEOLOGICAL MODEL: (Magnified image in enclosed CD) 60