New Colombia Resources, which is primarily focused on developing high-quality metallurgical coal properties in the Republic of Colombia, announced a brilliant strategic move today as the company will be rapidly moving to offset the closure of all the rock quarries in Bogota by environmental authorities via their own plans to begin extracting raw building materials from the company’s 100%-owned flagship La Tabaquera coal project in Guaduas (estimated 17M tonnes of reserves), starting as early as this January.
This is a marriage of pure logistical upside and mounting demand, as the requirements generated by the Columbian government’s sweeping Fourth Generation Highways Project, designed to construct or upgrade over 5k miles of roadways, combine with those emanating from the final segment of the “Road to the Sun” project, which is proximal to La Tabaquera. With the considerable amounts of granite, marble, and gravels available on the site, NEWC will be able to generate cash flow off a hungry market while lining up the mine development vectors nicely. Moreover, the current boom in residential/commercial construction, as well as infrastructural growth in Columbia provides a wider, and extremely solid operational backdrop.
The company plans to turn over revenue from sold building materials directly into developing the coal mine and submission of the appropriate application for a building material environmental and work permit is already in the offing, with NEWC already prepping the application with geologists for submission to the local environmental agency. The company just filed their EIS with the Agencia Nacional de Mineria (and with the Regional Autonomous Corporation) at the end of last month (Oct 31) and once they have the building material application in they should see a site visit within approximately ten days, as well as a quick approval shortly thereafter.
The company’s Minera San Jose Ltda subsidiary is currently in talks with a CAT vendor out of Florida to secure equipment capital via Ex-Im Bank and should have the credit application processed in short order. Material development will be an easy way to ramp up to coal production at La Tabaquera and NEWC will be putting in their application for a site visit to the coal operations within the next few days, with drilling commencing according to their already outlined program as soon as the financing is settled.
President of NEWC, John Campo, beamed with pride at the company’s strategic ramp up plan and tipped his hat to investors that NEWC has identified the perfect way to finance the project into rapid fruition. The company is already in contact with road builders to enter into a supply contract and with aspirations to eventually build/buy river (nearby Magdalena River) and rail loading facilities, as well as diversify into ancillary areas like coal coking and material transportation, NEWC is an ambitious little outfit to really keep an eye on.
New Colombia Resources has a broad-spectrum approach to growth markets in Columbia and is also developing a highly lucrative USDA Certified Organic Coffee distribution network spanning North America, China, Columbia, and Europe via the Café Tolima Don Diego acquisition (reported Oct 1). The company is even entering the biodiesel production space through African palm tree farming (small-scale at first, around 2k trees) to increase their overall revenue generation, with work proceeding apace on the Atlantic Coast in concert with representatives of the GH 500 hybrid oil palm supergene seed developers, as well as Maxima fertilizer from Malaysia.
Learn more at www.NewColombiaResources.com
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