New Colombia Resources Inc. announced the signing of a US$90 million purchase agreement for metallurgical coal with American Steel Industries LLC (ASI) of Philadelphia, PA, a joint venture partner with a Chinese government owned multi-billion dollar commodities and steel trading company, earlier this month.
Deliveries loaded at the port in Colombia for shipment to South China in 2017 will be as follows:
- April: 60 000 t.
- May: 40 000 t.
- June: 40 000 t.
- July – December: 60 000 tpm.
In November 2016, New Colombia Resources entered into a joint venture agreement to operate metallurgical coal Concession Contract JC3-15231 located in the municipality of Zulia approximately 25 km from Cucuta, Colombia. Engineers have been onsite since early December updating the Work Plan and Environmental Management Plan for a 10 000 tpm operation and have determined that production costs will drop from US US$30 to US$25/t at this capacity.
As the company gears up to bring this mine to production, it plans to source coal for the first shipment in April and is analysing several proposals from suppliers that provide significant margins based on the price agreed with ASI. Once the San Gregorio mine is producing 10 000 tpm, they will still need to source the remaining balance of coal needed to fulfill the contract.
New Colombia Resources is also developing mining concessions in Guaduas, Cundinamarca, where they control close to 4000 ha. of metallurgical coal concession contracts. Their first contract in Guaduas, ILE-09551, has an approved Work Plan for coal and is awaiting approval of the addition of building materials to begin operations. Approval is expected shortly; therefore they have begun plans to move equipment on site. Their rock crushing plant can produce 1000 m3/day to provide material to the biggest road projects in Colombia within 3 miles of the company's mining operations. New Colombia is also making plans to start producing coal on this property with several foreign companies that have done site visits.
Read the article online at: https://www.worldcoal.com/coal/01022017/new-colombia-resources-provides-update-on-metallurgical-coal-operations/