Coalcorp Announces New Mine Contractor and Commencement of Rail Spur Construction at La Francia
TORONTO, April 23 /CNW/ - Coalcorp Mining Inc. (TSX-CCJ) announced today
that it has completed negotiations with Masering S.A., as lead operator, to
partner with the existing mine contractor to support the expansion of
production at La Francia Pits A and B. Masering is a mining company with over
20 years of experience, having worked as main mining operators for "Grupos
Argos" and subsidiaries of Glencore International A.G. in Colombia, among
others. For the La Francia operation, Masering will increase the equipment
fleet at the mine site with the addition of 29 Caterpillar 777F haul trucks,
five excavators (17 cubic metres), two Caterpillar 16M graders and two drill
machines, commencing in May and continuing through to November 2008. The basic
contract rates for mining coal and waste are similar to the present contractor
rates at the La Francia operation. At the average life-of-mine stripping
ratio, this direct mining cost is approximately $24 per tonne of coal.
Coalcorp also announced today that it has received all necessary
approvals and finalized plans for construction of the rail spur to connect its
La Francia mine with the Fenoco line. Construction will commence the first
week of May and is expected to be finished in September. Once complete,
Coalcorp will have up to 3.5 million tonnes capacity of annual rail access to
ship its coal to the northern ocean ports near Santa Marta.
Commenting on the announcements, Serafino Iacono, Chief Executive
Officer, stated that "the addition of Masering will significantly increase our
current haul capacity and help ensure we meet our mine plan targets to more
than double coal production from La Francia Pits AB within the next 12 months.
The rail project is an essential component of our integrated coal strategy to
secure the infrastructure necessary to export our coal to international
markets and to significantly reduce the costs of transporting our coal to
port."
Coalcorp is a coal mining, exploration and development company with
interests in the La Francia and La Caypa coal mines and related infrastructure
projects and a number of coal exploration properties, all located in Colombia.
Further information can be obtained by visiting our website www.coalcorp.ca.
%SEDAR: 00004043E
For further information: Michael Davies, Chief Financial Officer, (416)
360-4653
