Its subsidiary, Compañía Minera San Jose Ltda., is in negotiations with a foreign entity for the plant’s construction and has secured a US$200 million letter of intent from a Chinese construction firm to join a consortium that could finance the development the plant as well as the operation that will feed it.

“New Colombia Resources Director Erasmo Almanza received a report from the consortium partner on the status of negotiations of the installation of the thermal coal power plant in Guaduas,” the company said October 19. “The report states there have been meetings with the financing team seeking the best financing option for the project and have modified the volume of power generation to optimize material inventory with time.”

NCR will meet with Almanza to protocolize negotiations and establish the new power company, officials added.

The company’s coal reserves are estimated to be 70% metallurgical and 30% thermal; NCR said the concession contract up for development by the consortium is close to another one of its contracts and is projected to have a similar 70/30 ratio. The news is especially notable, officials said, because it will have a market for its thermal product while developing met opportunities in the face of rising prices.

“The company has met with a multibillion-dollar Asian conglomerate interested in their premium metallurgical coal,” NCR said.