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New Colombia Resources Inc. announces US$90 million purchase order for metallurgical coal

Published by
World Coal,


New Colombia Resources, Inc., a Colombian company listed in the US with premium metallurgical coal properties and medical marijuana operations, is pleased to announce they have signed 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. ASI has been exporting steel from China for the past 12 years and is one of its largest steel exporters, for more information about ASI, visit http://www.asi-steel.com/.

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.
  • This contract will be filled by New Colombia's joint venture with MSG Mining Corp. The joint venture has sourced the coal to make timely deliveries per the agreement. Some of the coal will be supplied by the joint venture's Mina San Gregorio in Cucuta, Colombia with the remainder being sourced from third party producers. The coal will be stored at the Company's coal yard in Cucuta with a 50 000 t capacity and industrial scale, then trucked or barged to a port on the Caribbean coast for shipment to South China.

    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. New Colombia Resources and MSG Mining Corp. are registering a Colombian subsidiary that is 51% owned by New Colombia Resources and 49% owned by MSG Mining Corp. Engineers have been onsite since early December updating the Work Plan and Environmental Management Plan for a 10 000 tpm operation to begin coal mining in February 2017.

    The coal from this area has a high 15 000 Btu/lb. calorific value that is appetising for metals producers. The concession contract has an approved Work Plan by the National Mining Agency (ANM) and an Environmental License from the local environmental agency.

    The Work Programme identifies at least two coal formations, Cuervos and Carbonera, with over eight coal seams with estimated reserves between 1 to 13 million t each. Based on the Work Programme, the Companies initially expect to begin extracting coal from Seam 1 (Manto 1) of the Cuervos Formation with an estimated 2.4 million t of reserves that are believed to be easily accessible. In February 2017, the Companies anticipate initiating a coal operation to produce 10 000 tpm that can be scaled up to 30 000 tpm. During extraction of the Cuervo Formation, they will explore the Carbonera formation coal seams with estimated reserves between 12 - 13 million t each. Total Reserves are estimated at over 40 million t.

    A showcase mining project

    The San Gregorio Mine will be a showcase mining project in Water and Wastewater Management. New Colombia's joint venture partner MSG Mining Corp. is owned by Tito C. Castillo, title holder to the Concession Contract. Mr. Castillo, a Chemical Engineer/ MBA, has been in the Water Treatment Equipment Industry for over 25 years in the US and elsewhere. He spent six years in the Middle East working with the latest technologies in the Reverse Osmosis Process and the past few years assisting the Government of Colombia with water issues. The Water and Wastewater Large Modular Plant System is the latest technology that will play a vital role in Colombia's mining sector since the country is desperately trying to conserve the Andes Mountain Range and their river system while mining their rich mineral reserves. This Mine project will give the industry a pilot system to show that mining does not mean the destruction of the Eco system.

    New Colombia Resources is also developing mining concessions in Guaduas, Cundinamarca where they control close to 4000 hectares 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. They purchased a 1000 m3/day rock crushing plant that is expected to be operating this quarter, and the Greenfields where these operations will begin within 3 miles of the biggest road project in Colombia.

    Read the article online at: https://www.worldcoal.com/coal/06012017/new-colombia-resources-inc-announces-us90-million-purchase-order-for-metallurgical-coal/


     

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