A prospective new coal producer in Colombia, a country that ships heavily into the U.S. Gulf and Atlantic coast power plant markets, is being formed to explore and potentially produce steam and metallurgical coal from properties in Colombia.
Colombian Mineral Resources Plc described some of its preliminary work in a March 28 filing at the London Stock Exchange. The company was incorporated in Ireland and has acquired a wholly-owned subsidiary, Colombian Mineral Resources Ltd., which was incorporated in the British Virgin Islands in April 2011.
Through that new subsidiary, the company is engaged in the exploration of coal mining concessions in Colombia. The subsidiary currently holds 14 fully granted mining concessions and has five coal-mining concessions at advanced application stage through its wholly owned Branch CMR Colombia, which has a principal office in Bogota, Colombia. These concessions are located in the provinces of Cordoba and Santander.
“The objective of the Group is to pursue and acquire coal mining projects and assets in Colombia and to engage in the exploration, exploitation and commercialisation of steam coal, coking coal and coke products,” said the company. It noted that Colombia is the 10th largest producer of coal and 4th largest exporter of coal in the world. Major companies currently producing coal in Colombia include Alabama-based Drummond Co.
The company Chairman is Ignacio María Ozcariz Arraiza, a Spanish national whose educational background includes a degree in Aeronautical Engineering. His professional career spans several companies in the aerospace sector since 1978. In the last six years, Arraiza has developed several companies in different business fields.
The CEO is Boris Cordovez Vargas, a Colombian national, who has mining experience that started in 1990 when he was named managing director for an emerald mine in Colombia, called Quipama. In the infrastructure field, Vargas is the founder and CEO of Sociedad Portuaria del Sinú, S.A., a Colombian company that currently holds a first right from the Colombian government to develop a seaport in Colombia. This port is currently under development with all pre-feasibility studies, initial designs and marketing reports having been carried out.
Luis Jaramillo is the company’s Chief Technical Officer. He is a Colombian national and a geologist who has had government jobs in the past. During his career in private companies, he was Head of Geology for Rio Tinto Colombia for more than five years on base and precious metals and coal. He has worked with other international companies in Colombia such as Anglo American, Billiton Developments and Western Mining Co.
Carlos Pena is a Non-executive Director who has over 20 years of experience in the global mining sector. He has been involved in mining projects and operations in Latin America, India, Australia, Africa, France and the U.S.
Beatriz Duque Montoya is another Non-executive Director. Montoya, among other things, was from 2005 to 2010 the Managing Director of the Mines Department in the Colombian Ministry of Mines and Energy.