New Colombia Resources Inc. has entered into a joint venture to build out metallurgical coal Concession Contract JC3-15231 located in Cucuta, Colombia. This Concession Contract has an approved Work Plan and an environmental license, which allows revenue generating production to begin immediately. The San Gregorio Mine has estimated reserves of over 40 million t of high quality metallurgical coal.
Small scale mining has been done at the San Gregoria Mine, this venture is established to bring the mine to large scale production. The first step to bring the mine to production is to build out housing facilities for workers, a water reclamation system, mobilisation of equipment, trucking, and management of personnel. New Colombia Resources and their joint venture partner have identified all the service providers needed to begin an efficient and profitable mining operation. Soaring metallurgical coal prices allow for substantial profits to be realized. A strong US Dollar versus the Colombian Peso (COP), coupled with a low cost of production, makes this a very attractive venture for investors. Metallurgical coal prices have reached a five-year high of over US$300/t earning coking coal the hottest commodity of 2016, prices started the year at about US$70/t.
The company plans to produce 15 000 tpy of metallurgical coal in 1Q17, scaling up to 30 000 t per month by year end.
New Colombia Resources believes this venture compliments their existing developing metallurgical coal mines in Guaduas and allows cash flow to begin immediately. Company contacts for coal buyers and investment bankers will accelerate large scale production at San Gregorio. The Guaduas mining project is expected to also begin in 1Q17 once a permit adding raw building materials is granted for their approved work permit for coal. Initial plans in Guaduas were to begin processing raw building materials to supply the many local infrastructure and construction projects in the area, then begin coal production. This joint venture will accelerate the production of coal in Guaduas to satisfy the demand of existing metallurgical coal buyers in Cucuta while supplying building material to local projects.
New Colombia received an indication of interest to develop their coal mines to supply thermal coal to a proposed power plant to be built in Guaduas. A meeting with top officials at the Agencia Nacional de Mineria (ANM) and the Minister of Energy is being coordinated once itineraries are confirmed.
Read the article online at: https://www.worldcoal.com/coal/18112016/new-colombia-resources-enters-into-jv/
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