BARRANQUILLA, Colombia /PRNewswire/ – New Colombia Resources announces plans to begin extracting raw building materials from their farm in Guaduas, Colombia. In addition to coal, New Colombia’s mining title covers other resources.
The farm has vast amounts of gravel, marble, granite, and other metamorphic resources. The company is in contact with road builders to enter into a supply contract. The last segment of the Road to the Sun project is in close proximity to La Tabaquera.
The company is currently scouting machinery and favorable financing to begin operations in January. New Colombia’s subsidiary, Minera San Jose Ltda, is working with an agent of a U.S. CAT dealer to submit a credit application to the Ex-Im Bank to purchase equipment from the Florida dealer. In the meantime the company is focused on acquiring equipment locally to begin operations as soon as the permits are approved while this application is in process.
The environmental authorities have closed all rock quarries in Bogota, creating a sharp increase in the price of building materials. New Colombia mining operations are 60 miles from Bogota. Colombia is experiencing a boom in residential and commercial construction as well as infrastructure growth. The government of Colombia has begun the Fourth Generation Highways Project with the intent of updating major roads to international safety and speed standards. This project will improve or build over 5000 miles of roadway and is being funded through public and private capital. These roads are expected to improve Colombia’s competitiveness in order to successfully take advantage of the many trade agreements signed in recent years.
New Colombia will submit an application for an environmental and work permit for raw building materials shortly. The company is preparing the application with geologists to submit to the local environmental agency. Once submitted, the company expects a site visit within 10 days followed by a quick approval. It is the company’s goal to generate revenue in January 2014.
The cash flow generated from the building materials will be used to develop the coal mine on the same property. The company will be applying for a site visit for the coal operations in the coming days. New Colombia has submitted the baseline of the environmental impact study to both the National Mining Agency (ANM) and the Regional Autonomous Corporation (CAR). The company plans to begin drilling according to their drill programme once the necessary financing is in place.
“We believe we can obtain less dilutive financing with approved work and environmental permits for coal and cash flow from the construction materials,” stated John Campo, President of New Colombia Resources.