New Colombia Resources, Inc. Announces Plans for a Railroad Extension to Deliver Premium Coal to Export Markets. The Company is approaching potential partners for this US$ 350 MM project.
BOGOTA, Colombia, Jan. 31, 2013 /PRNewswire/ -- New Colombia Resources, Inc. (OTCQB: NEWC) ("NEWC" or the "Company") announced today its plans of a Public Private Partnership with the Agencia Nacional de Infraestructura (ANI) of Colombia to build a railroad that will move its high quality metallurgical coal from central Colombia to export terminals on the northern coast. The Company is in talks with consultants to develop a pre-feasibility study to submit to the ANI. Once the pre-feasibility study is approved by the ANI, New Colombia Resources and its partners will own the project and commence the feasibility study. Once the feasibility study is approved, the consortium will be granted a 30 year railroad concession.
Since the Free Trade Agreement (FTA) with Colombia was approved by the United States, commerce between Colombia and the U.S. has increased creating a need for more infrastructure projects to move cargo. Shipping containers from the ports of Barranquilla and Cartagena are mostly trucked 500 miles to the capital city of Bogota with over 7 Million people. The pre-feasibility study will identify shippers, with letters of intent, that need to move cargo to and from the ports. The railroad will move coal north and assorted goods south. Fuel prices in Colombia are over $ 5/gallon; this project will not only cut costs for shippers but significantly reduce traffic congestion and emissions related pollution. Over 6 MM tonnes of cargo is shipped from central Colombia to the ports each year, 3 MM tonnes of this is coal. The Company expects this amount to increase substantially once all the exploration projects in the area are developed.
"Central Colombia has some of the highest quality coal reserves in the world, our job is to not only get it out of the ground, but move it to the export terminals. One of the biggest problems coal companies face in Colombia is getting coal to the ports, producers in the region are trucking coal to the ports at a profit. We have identified several large multi-national companies that are exploring in our area that would benefit from this railroad. An ownership stake in a railroad should significantly increase our profit margins," stated John Campo, President of New Colombia Resources, Inc.
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About New Colombia Resources, Inc.
New Colombia Resources, Inc. is focused on the acquisition and development of high-quality metallurgical coal properties in the Republic of Colombia. They own 100% of La Tabaquera coal mine in Colombia with an estimated 15- 17 MM tonnes of reserves, 70% metallurgical and 30% thermal coal. Once the necessary financing is obtained, the Company plans to have three revenue producing business units in Colombia: coal mining, coking oven facilities, docks, river, and rail transportation to export terminals in Colombia. The Company is also exploring allegiances with U.S. and Colombian universities to study capturing Coal Bed Methane (CBM) in Colombia. For more information on the Company visit their website at www.vsustechnologies.com. The company's new website under construction is www.newcolombiaresources.com
Transportation, Logistics and Other Information
New Colombia Resources plans to build or acquire wholly owned river or rail loading facilities on the Magdalena River close to their mines. The coal will be trucked to these distribution centers, and then barged via the Magdalena River or by rail to terminals in Barranquilla, Santa Marta, or Cartagena for export. Initially they will use existing logistics providers while their transportation projects are being developed. After the rail projects and the "Road to the Sun" project are completed, New Colombia Resources will have one of a few metallurgical coal mines in the World with river, rail, and road access to coal export terminals on both the Atlantic and Pacific Oceans.
Forward Looking Statements
Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include financing, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations. New Colombia Resources, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.
New Colombia Resources, Inc.
(57) 318-657-0918 Colombia
New Colombia Resources
Cra. 16 # 79-31 Suite 703a
SOURCE New Colombia Resources, Inc.