Coking Coal Mine

The company’s owner of a considerable mineral coal reserves in Colombia has invited to our client to privately bid for the coal assets of a coking coal mine.
Colombia is the 4th largest coal exporter in the world and has the largest reserves of bituminous coal in Latin America. The country’s reserves are calculated at 7 Billion metric tons. According to test conducted by project owner’s the proven reserves amount to 110MM tons, of which 70% is heating coal and 30% is metallurgical coal. Verification of reserves is being conducted by an England well know company in London, a prime engineering firm with world-wide reputation in this area.

The reserve is located in the coal rich region of Colombia with the major formations found at a large plateau in the western flank of the Andes Mountains. The area of 4800 hectares is 175 miles north of the capital city of Bogotá and 340 miles from the Caribbean ports. The mine has railroad, fluvial and road access to the ports of Cartagena, Barranquilla and Santa Marta. The mine is in operation with a current production close to 25,000 tons per month.
Tests have been done by U.S. laboratories and by local laboratories following the standards of the U.S. Geological Service. Mining modeling was done by U.S. trained engineers.

About 30% of the proven reserves can be classified as “open pit”, as defined by the U.S. Geological Service, and a very low ratio of sterile to coal. The quality of the coal is exceptional with a BTU ranging from 13,500 to 14,500, ashes between 2-6%, sulfur levels of 1%, humidity average 2.07, and fixed carbons average 59%. Before their decision to sell, the owners were planning a US$ 35MM investment to build a coking plant with a production capacity of 500,000 tons of coking coal per year. Additionally, several companies in the energy producing sector have approached our client to build a power plant utilizing the coal resources.