Metallurgical Coal Prices Have Surged Over 150% in Past Few Weeks, Goldman Sachs Says Higher Coking Coal Prices Are Here to Stay
BARRANQUILLA, COLOMBIA–(Marketwired – Sep 27, 2016) – New Colombia Resources, Inc. (OTC PINK: NEWC) (“New Colombia or the ‘Company”), a Colombian company listed in the U.S. with premium metallurgical coal mining titles, is pleased to announce a letter from the Agencia Nacional de Mineria (ANM) stating the addition of raw building materials to their existing approved work plan for coal is under review. The company believes this is a final step before approval.
The letter including the background history of the mining title and all the works submitted by New Colombia Resources can be viewed at https://drive.google.com/open?id=0BxSKP5j2FlseY3VGcl9WUUpBa0k
The company’s concession contract ILE-09551 for coal and other grantable minerals submitted a work plan for coal mining in December 2012; it was approved in December 2013. Due to poor market conditions for coal, in 2014 the company decided to add raw building materials to the work plan to build a gravel pit to supply the growing construction and infrastructure projects in Colombia. The construction market grew by 10% in 2014 making building materials an attractive market. New Colombia Resources spent much of 2014 raising the capital needed to hire an international exploration company to produce a work plan for raw building materials and create other revenue generating businesses.
In 2015 they hired South American Explorations (SAM) and Diego Caicedo as project manager. SAM completed the work plan in February 2016 and it was submitted to the ANM. In April 2016, the ANM performed a site visit to the Company’s property and recommended they redo the work plan to include two gravel pits instead of one in order to not disturb a small creek that the original plan rerouted. SAM produced a new mining design that includes two pits instead of one. A copy of the new mine design can be seen here https://drive.google.com/open?id=0BxSKP5j2FlseeG91LXY3WllJU28
In June 2016, the company resubmitted the new mine design taking into consideration the recommendation from the ANM; last week they received notice it is under review and not to begin mining operations until final approval. The Company expects final approval in short order, once approved, the resolution of approval will be forward to the local environmental agency for their approval to begin mining operations for both gravel and coal. Plans are to begin immediately crushing rocks to generate revenue. In 2014 the Company purchased a rock crushing plant with a 1000 m3/day capacity that will begin to generate revenue immediately. To see a financial model of the gravel operation, click here https://drive.google.com/open?id=0BxSKP5j2FlseOFE5TVdReGRCUUE
New Colombia Resources expects to partner with a major corporation to begin mining high quality metallurgical coal, however, the cash flow from the gravel operations will allow them to begin coal mining operations on their own.
The spot price of coking coal has skyrocketed this year from $70/tonne to over $ 200/tonne because of China’s new policy to decrease production and other factors. Although the company director, Erasmo Almanza, entered into a US$ 200 Million LOI with an Asian firm, New Colombia Resources has been meeting with other major Asian conglomerates and soliciting steel mills to get the best deal possible to begin a sizable metallurgical coal mining operation. Original plans are for output of 30,000 tonne/month, at today’s spot price that would produce monthly revenue of over $ 6,000,000.
Goldman Sachs issued a report last week stating their projection that coking coal prices will remain high. http://www.bloomberg.com/news/articles/2016-09-23/goldman-says-higher-coking-coal-prices-are-here-to-stay
Shares in big board metallurgical coal producers like BHP Billiton, Consol Energy Inc., and Cloud Peak Energy Inc. have seen significant price increases in the past few weeks.
The Peace Treaty signed yesterday in Cartagena between Colombia and the FARC will make generating interest for investment in Colombia much easier. New Colombia Resource also has a joint venture manufacturing medical marijuana products and is in the process of creating sustainable hemp industries in Colombia. To view or purchase Sannabis products visit www.sannabis.co. Follow Sannabis on Facebook for photos and testimonials at https://www.facebook.com/sannabis.cannamedicinal
New Colombia Resources is making strong efforts to retire debt that is being converted into free trading shares causing pressure to the company’s stock price, although the Company believes this creates an attractive entry to point for investors.
New Colombia Resources’ Blue Gem coal is only found on the KY-TN border and central Colombia and is used to produce specialty metals such as Silicone to make solar panels, electric car batteries, and many more next generation products. New Colombia Resources has concession contracts and applications totaling 5000 HA of high quality metallurgical coal that will always be needed to produce steel and other specialty metallurgy products. Blue Gem coal miners in Kentucky are shutting down operations due to over-regulation creating a supply void the Company intends to fill.
New Colombia Resources, Inc.
New Colombia Resources, Inc. is focused on the acquisition and development of high-quality metallurgical coal properties and other available resources in the Republic of Colombia. They expect to have several revenue producing businesses including; metallurgical coal mining and rock quarry aggregates for domestic Colombian highway and railroad building projects. The Company owns 100% of La Tabaquera metallurgical coal mine in Colombia with an estimated 15- 17 million tonnes of reserves. They have another pending acquisition for 390 ha and a solicitation contract for 184 ha metallurgical coal concession. New Colombia Resources also holds a significant position in Sannabis SAS which legally produces medical marijuana products in the Republic of Colombia, visit www.sannabis.co. For more information on the Company visit www.newcolombiaresources.com.
Forward Looking Statements
Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as “anticipate,” “seek,” intend,” “believe,” “plan,” “estimate,” “expect,” “project,” “plan,” or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements might not occur. Factors that could cause or contribute to such differences include financing, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations. New Colombia Resources, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.