Coal miner in talks to build 300MW Colombia thermal plant

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Wednesday, October 19, 2016

Coal miner New Colombia Resources said it is in talks to build a 300MW coal-fired power plant in the town of Guaduas, Colombia.

The site is adjacent to mining concessions held by New Colombia, a company statement said.

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The firm said it "has secured a letter of intent for US$200mn from a major construction company in China to join a consortium to finance the development of the coal operations to feed this new plant and construction of the power plant."

"The company's coal reserves are estimated to be 70% metallurgical and 30% thermal," New Colombia said.

The firm cited a lack of confidence in Colombia's hydropower-dependent grid due to drought concerns, and said it hopes to create a local market for coking and thermal coal produced at the concessions.

Colombia was the largest supplier of coal to Chile in July, according to the most recent available data from the latter's national energy commission.

Chile and Brazil are Colombia's principal thermal coal destinations in Latin America, according to an April report by Platts.