New Colombia Resources, Inc. a US-based company with high quality metallurgical Blue Gem coal mining titles, medical marijuana, and industrial hemp operations in Colombia, announced today that they received notification from the Agencia Nacional de Mineria (ANM) to accept new terms for Contract Application # OG2-10451 for another approved Concession Contract for high quality premium metallurgical coal.
On July 2, 2013, New Colombia Resources filed a Form 8K with the Securities and Exchange Commission disclosing that Erasmo Almanza, Director of New Colombia Resources, INC., applied for an additional coal and other grantable minerals concession contract totaling 183.3 HA (452 Acres) contiguous to their current Concession Contract # ILE-09551 in Guaduas, Colombia.
The new concession contract application number is OG2-10451. On April 15, 2016 the ANM posted a notice for Almanza to accept new terms for the concession contract within 30 days and adjust the Exploration Program Format A.
Although the original application is for 183 HA, the Company believes the area may be reduced since it's considered a strategic reserve for the country. 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.
According to the company release, metallurgical coal miners in Kentucky have shut down operations due to over-regulation and poor market conditions, which has generated a glut of late model mining equipment being made available to New Colombia Resources. Company President John Campo will travel to Kentucky this week to acquire mining equipment to begin met coal production, also meeting with potential investors, customers, and partners with state of the art underground mining equipment and experience in extracting metallurgical coal. This equipment can easily be shipped to their property via the Mississippi and Magdalena Rivers.
"I'm sad to see the devastation caused by mine closures in small town America, but I'm happy be able to offer veteran mine operators a mutually beneficial opportunity to continue what they know best while providing a much needed product for solar panel production which ironically is in the mix to replace thermal coal power plants,” Campo said in a statement. “One continuous miner can produce 1000 tons per shift which generates cash flow of at least US$ 1,500,000 per month at today's depressed prices.”
New Colombia Resources' Work Permit for underground metallurgical coal mining was approved on December 23, 2013. The company applied for an environmental license in 2014 but decided to halt the process in order to add building material production to the same license. Earlier this year the company submitted a Work Plan adding building materials to their approved metallurgical coal Work Permit.
The company met with the National Mining Agency at their property last week for a technical visit for the addition of building materials and the Agency verbally gave them comments for clarification of a minor issue. New Colombia Resources will submit the clarification and expects to receive approval in an expedited due course in order to supply material to the massive local road and construction projects. The Work Plan submitted to the Mining Agency estimates revenue of over $3 million per year from building materials.