New Colombia Resources has announced that one of its subsidiaries is currently in negotiations to build a 300-megawatt thermal coal power plant in the central Colombian city of Guaduas. The subsidiary, Compañía Minera San Jose Ltda, has partnered with a Chinese entity that has secured a $200 million USD letter of intent to finance the project.
Erasmo Almanza, director of New Colombia Resources, noted that the volume of the power generation at the plant has been modified as the consortium has sought funding throughout the year. But the plans have moved forward, with the latest update adding clarity towards establishing a new power company that will be capable of providing electricity to Bogotá.
The new plant will be located nearby coal concessions held by New Colombia Resources, which currently has coal reserves in the country that are estimated to be 70% metallurgical and 30% thermal.
“The company feels this is a major development creating a local market for their thermal coal while developing metallurgical coking coal that has more than tripled in price this year to over $230/tonne,” said the firm in a statement.
New Colombia Resources added that it “has met with a multi-billion-dollar Asian conglomerate interested in their premium metallurgical coal.”
Earlier this year, the company announced plans to develop a $200 million USD coal mining operation in the department of Cundinamarca, which is home to the capital. In addition to coal, the firm also has an increasing presence in the nation’s medicinal marijuana sector and is hoping to move into medicinal coca as well.
According to Bloomberg, New Colombia Resources acquired Compañía Minera San Jose Ltda in 2013. The subsidiary was founded in Colombia in 2000.