- American Energy Mineral

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AMERICAN ENERGY MINERAL
Energy project & Mining company
American Energy Mineral Plc. Developing Power Generation
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American Energy Mineral
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C
ontent
1. About us
2. Coal-fired power plant project
3. Coal mining operation in Santander
4. The coal market
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American Energy Mineral
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C
ontent
1. About us
2. Coal-fired power plant project
3. Coal mining operation in Santander
4. The coal market
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American Energy Mineral
1. About us
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
American Energy Mineral is a group founded in 2011, specializing in the development of a power plant
and mining projects in Colombia.

Currently, two projects are being developed by the company: the construction and management of a
coal-fired power plant in Córdoba area and a coal mining operation in the concessions territory of
Santander.

The group owns thermal coal deposits in two areas in Colombia with resources of 361 million tons.

Córdoba area: deposit of 143 millions tons intended to supply the coal-fired power plant.

Santander area: 2 deposits of 218 millions tons ready to start production.
Shareholding Details of the Parent Company
MINORITY
SHAREHOLDERS
17,5%
American Energy Mineral Plc (AEM Plc)
100%
American Energy
Mineral Ltd
AEM Ltd
100%
MINERÍA
CAPITAL
75,1%
American Coal
Santander Ltd
ACS Ltd
100%
ZOSTINA
7,4%
CMR Colombia
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American Energy Mineral
1. About us
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The AEM Project
Description
Currently AEM is
developing 2 projects
in Colombia
a) Construction & operation of coal-fired power plant in Córdoba
b) Coal mining exploitation in one of the Santander block
a) Coal-fired power plant - Córdoba
b) Coal mining exploitation - Santander
AEM has signed an agreement with the one of the major
Colombian companies for the generation, distribution and
trade of energy, to construct and operate a coal-fired
power plant which will be fueled by our coal (143 millions
tons). Energy production is scheduled to start in 2018.
Located in Santander, one of the block has estimated
resources of 128 million tons of bituminous coal of high
calorific value. The company has all the licenses to start
exploitation with an estimated volume of 360,000 tons /
year (from the 5th year).
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American Energy Mineral
1. About us
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Coal-fired power plant in Córdoba
Coal mine operation in Santander
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Construction and management of a Coal-Fired Power
Plant.
The coal-fired power plant will be located in the mine
mouth of the company's property deposit and will
provide the coal that will be use to fuel the power plant.

AEM has ownership over two coal blocks in the Santander
region with reserves of 218 million tons of coal.
One of them, “La Estrella” block, has 128 million tons of
coal and the license to operate the mine.
Santander area
Coal Reserves
143 Million tons
(37 Mill. Proved)
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Power plant capacity
Estimated 300 Mw
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5
4
1
2
Transport electricity line
500 KV transport under
our concessions
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Estrella Block
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American Energy Mineral
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C
ontent
1. About us
2. Coal-fired power plant project
3. Coal mining operation in Santander
4. The coal market
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American Energy Mineral
2. Coal-fired power plant project
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The power plant will be located in the Córdoba department in Colombia close to the mine
concessions of AEM
Coal concessions
Cordoba
111M
tons
143
MM
tons
Santander
347M tons
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American Energy Mineral
2. Coal-fired power plant project
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Unique characteristics for coal-fired power plant: deposit of coal to supply the power
plant, connected to electricity transmission line, and proximity to water sources
Lines 500 KV
Lines 230 KV
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American Energy Mineral
2. Coal-fired power plant project
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Electricity transmission network in Colombia and neighboring countries
Coal
power plant
Systems of electricity
grid connection
Substation
Electricity grid
connection
Electricity grid
connection
Transmission
lines
Future coal-fired power
plant
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2. Coal-fired power plant project
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Strategic Partnership
AEM is developing the coal-fired power plant in partnership with the largest generator,
distributor and trader of energy in Colombia
Power plant
SPV (AEM vs
partner)
Feasibility
study
2015
Mining Financing
study pre-project
EIA
Start up
construction
power plant
2016
Mining
operation
2017
Obtaining EIA Financing
power plant
construction
Start power
generation
2018….
prepare mining
operation
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2. Coal-fired power plant project
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Project Timeline
Projected
Done
STEP 1:
Power plant development
Exploitation
Licenses and
EIA of the coal
mine
Evaluation of
coal reserves
to supply the
coal-fired
power plant
STEP 2:
Pre-project
Mining and
power plant
predevelopment
project
2014
Financing
Pre-project of
power plant.
Feasibility
study
2015
STEP 3:
Exploitation
EIA Licence, financing
power plant and
Construction of the
power plant and
operation
2016-2035
+ Energy company
Partnership
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American Energy Mineral
2. Coal-fired power plant project
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There are three models to sell the electricity produced in Colombia
Realibility charge
• The state agrees to purchase the power generated during 20 years
• The prices are fixed through energy auctions
• A project of power plant becomes a “project finance”
Commercializing
• There are 28 pure commercializing companies
• The demand is committed daily
• The prices are fixed in the energy stock exchange daily
Private contract
• The large mines need high quantities of energy (Kv)
• Prices are set between the two companies
• Contracts are signed for long periods
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2. Coal-fired power plant project
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The company is owner of the coal mine concessions where the power plant
will be located, with 143 million tons in estimated resources (37M proven)
Characteristics
Description
Resources proved
37 MM tons
Total resources estimated
143 MM tons
Mining type
Underground
Annual production
1 million tons
Average calorific value
10.500 (BTU/lb)
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2. Coal-fired power plant project
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Access
The concessions have
paved routes that permit
access
by
industrial
vehicles.
Route 74 is the main
thoroughfare along the
concessions.
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American Energy Mineral
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C
ontent
1. About us
2. Coal-fired power plant project
3. Coal mining operation in Santander
4. The coal market
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American Energy Mineral
3. Coal mining operation in Santander
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AEM is also owner of coal mine concessions within the province of Santander
Cordoba
111M tons
Santander
218 M tons
347M tons
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American Energy Mineral
3. Coal mining operation in Santander
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The company’s mine properties consist of two blocks: the first (Bloque La Estrella) with a
surface area of approximately 3,500 hectares (8,648 acres) comprised of 3 concessions
with resources of 128 million tons of coal and another block (Santander Semi-block)
comprised of 4 concessions spaced apart over a surface area of 3,400 hectares.
“Santander
semi-Block”
“La Estrella”
Block
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American Energy Mineral
3. Coal mining operation in Santander
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“La Estrella” block has all permits and licenses to start production
Bucaramanga area
Concession: La Estrella
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American Energy Mineral
3. Coal mining operation in Santander
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The block has direct access and paved public roads for both internal transport as well as
Atlantic cargo ports
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3. Coal mining operation in Santander
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La Estrella deposit
22,6 million tons
Key Figures
128 millions tons
Thermal coal
35,1 million tons
Underground operation
12.500 BTU/Lb average
70 million tons
Less than 1% sulfur
360.000 tons/years coal prod.
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3. Coal mining operation in Santander
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Project Timeline
To be done
Done
STEP 1:
Mining development
Exploitation
Licenses and
EIA
Evaluation of
reserves
STEP 2:
Coal mining exploitation
Mining
development
2012-2014
Financing the mine operation
Start the mining
2015-2035
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3. Coal mining operation in Santander
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Current Status
1
The area is
mapped and
studied in
depth
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The
Concession
work plan is
registered in
the ANM
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4
The
Concessions
environmental
license are
already issued
by the CAS
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Ready for
Mining
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3. Coal mining operation in Santander
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Description
LOCATION
San Vicente de Chucurí (In the south of Bucaramanga)
Saving on cost in the
time of opening a mine
Connected routes adapted for trucks
Access to mine mouth for trucks of 40 mil/tons
ENVIRONMENT
Rural area with high development potential
Best production
indicators
High local acceptance to mining
Low environmental impact
DEPOSIT
Underground mining with controlled production costs
High calorific coal (12.500 – 13.000 BTU’s)
This coal obtains the
best selling prices and a
wider range of clients
Low sulfur content ( < 1%)
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American Energy Mineral
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C
ontent
1. About us
2. Coal-fired power plant project
3. Coal mining operation in Santander
4. The coal market
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American Energy Mineral
4. Coal market
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Annual GBP
Annual CPI
In 2013 Colombian GBP grew 4,3%
The Consumer Price Index at October 2014
(Inter-annual) was 3,25%
8,00%
10,00%
6,00%
8,00%
6,00%
4,00%
4,00%
2,00%
2,00%
0,00%
0,00%
2008 2009 2010 2011 2012 2013 2014
* Data DANE
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4. Coal market
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Rising coal production
6º exporter
In 2012 coal production in Colombia reached 89.2
million tons
Colombia exports 76% of coal production
* Data DANE
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4. Coal market
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Weight annual GDP
Weight mining GDP
The coal market in 2013 represented 1.5% of
Colombian GDP
The coal market in 2013 represented 60% of the
mining GDP
* Data DANE
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4. Coal market
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Evolution of coal Price
Mining royalties
The price of coal is increasing 8% annually
Coal mining represents 90% of mining royalties
paid to Colombia government
* Data DANE / ANH
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4. Coal market
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The evolution of the carbon market - key figures
Macro Key Figures
Period
Value
Jobs coal sector
2005-2011
+42,2%
GDP coal Colombia
2005-2012
+33,3%
FOB price Colombia
2005-2013
+64,3%
Production in Colombia
2005-2012
+56,4%
Global energy demand
1990-2011
+49,2%
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The main indicators that
measure the economy related
to the coal industry have
undergone significant growth
in recent years.
This growth has led Colombia
to become one of the leading
producers and marketers in the
region.
The CPI rose an average of
4.25% annually from 2005 thru
2012 (being the industrial CPI
of 2.25%).
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American Energy Mineral
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Spain
Colombia
Ireland.
Madrid
Paseo de la Castellana nº 135, 7ª planta.
28046 Madrid-España
Bogotá
Calle 93 No. 12 - 54,
Oficina 306, Bogotá – Colombia
Dublín
6 Northbrook Rd, Dublin 6
Ireland
Contact in Spain:
Contact in Colombia:
Víctor Sánchez
Boris Córdovez
Chairman & CEO
Managing Director- Colombia
bcordovez@aemineral.com
vspinacho@aemineral.com
Jorge Sanandrés
Chief Financial Officer
jsanandres@aemineral.com
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American Energy Mineral