New Colombia Resources Inc (OTCMKTS:NEWC) reported that mining engineers advanced a new outcropped coal seam more than 3 meters wide. Another firm’ s engineers were coming to the property to propose a deal to advance some of the assets.
New Colombia has an accepted Work Plan for coal mining, but, they’re waiting for approval of a rock mining sanction to commence operation on both coal and rocks. Metallurgical coal comes in the list of the hottest commodity this fiscal with increasing prices more than 400% since January. The recent jump in metallurgical coal together with the election of Donald Trump for the U.S. President has resulted in considerable interest in the metallurgical coal market.
Colombian coal contributes around 75% of coal imports to the United States and the firm has been approached for possibly blending coal to improve U.S. coal of lesser quality. The company’s Blue Gem coal is only seen on the central Colombia and KY-TN border and is utilized to manufacture specialty metals like Silicone to make electric car batteries, solar panels and other next gen products. New Colombia has concession applications and contracts amounting 5000 HA of premium metallurgical coal that will be required to manufacture steel and other specialty metallurgy items.
As per mining evaluation posted on the firm’s website, New Colombia has coal projected at 17 Million tonnes on the first mining title under development. It is projected to be 30% thermal and 70% metallurgical, the metallurgical coking coal value at current’s market prices can be somewhere around above $3 billion. The firm’s subsidiary has finalized a $200 million letter of intent with a foreign firm to advance their coal mines to construct and supply a power plant at the firm’s property. This would offer a local market for the firm’s thermal as the metallurgical coal is shipped to the World markets.
Colombia’s new rail assignments considerably reduce transportation expenses to export terminals. Miguel Centanaro, who is New Colombia’s logistic coordinator, is reorienting railroads to pull premium coking coal straight to ports from the mine on the Caribbean coast.