New Colombia Resources has announced the completion of a purchase agreement to send some $90 million USD of Colombian coal to China. The deal includes recurring shipments of metallurgical coal throughout the year in a deal made with Philadelphia-based American Steel Industries LLC, a joint venture partner with a large steel trading company owned by the Chinese government.
The company says it will ship some 500,000 tonnes of coal throughout the year in combination with MSG Mining Corp., a joint venture of New Colombia Resources. Some of the coal will come from the firm’s Mina San Gregorio in Cúcuta. The remainder will be sourced through third parties.
Scheduled deliveries include 160,000 tonnes going from Colombia to China from April through the June, before ramping that up to 60,000 tonnes each month from July through December. The product will be stored at firm’s coal yard in Cúcuta, which has a 50,000-tonne capacity, before being transported to the Caribbean coast for shipment.
New Colombia Resources also announced that a separate joint venture project in Zulia outside of Cúcuta, which is 51% owned by the company and 49% owned by MSG Mining, is expected to begin coal mining in February. Additionally, the firm says that it is continuing to develop some 4,000 hectares of mining concessions in Guaduas, Cundinamarca.