New Colombia Resources, Inc., a US company with coal and other resource assets in Colombia, has received an intent to purchase up to 600 m3/day of aggregates from their La Tabaquera coal mine. If accepted by New Colombia Resources, the company will enter into a formal contract. This intent to purchase is for at least US$ 675,000/month, depending on the lab results of the material. The approximate price for gravel in Bogota is US$ 45/m3 and US$ 60/m3 for shale. There are significant amounts of both these materials at the coal mine.
In a statement, New Colombia Resources said it was focused on bringing coal mining operations online, while taking advantage of the high demand for aggregates, which are abundant on the company’s mining title in Colombia.
The company said it was in a dominant position, since the environmental authorities have closed rock quarries in and around Bogota. This has limited supply and increased prices of aggregates. The company's goal is to sell material to end-users and expects to have several more purchase orders.
New Colombia Resources entered into a purchase contract for a rock crushing plant capable of producing over 100 m3/hour. The plant is being moved to their mine site in Guaduas this week and the company expects to have it set up by the end of June. They will begin processing aggregates as soon as the plant is set up and the permit to process aggregates is approved. The Company believes the permit will be approved by 30 June.
Government spurs infrastructure investments
Colombia is injecting US$ 25 Billion into the economy through infrastructure investments to spur growth. New Colombia will benefit by selling materials for these projects and using the new infrastructure to transport their coal to export markets. The cash flow from the building materials will help finance their coal operations.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/mining/16062014/new_colombia_resources_to_sell_aggregates_from_coal_mine_982/