Colombia Energy Resources, Inc. (CERX)

[Seshet]

I hope they are doing great things because this company have potential and might even have the talent. CERX volume is too low as of right now.

[IndoInvest]

slow news for this company

[Seshet]

I've been following CERX for a while now. We get ready to see
big opps coming for CERX.
Looks like the company has a good profile.

Colombia Energy Resources, Inc. (“CERX”) is a metallurgical coal exploration and mining company operating in the Republic of Colombia, South America. We are building an integrated coal resource and processing company to extract and process high-value coal products for export. We have acquired coal deposits, are operating and building met coal mines and coke plants, and plan to become a leading consolidator in the Colombian met coal market.

[IndoInvest]

Mining an Emerging Market
Colombia Clean Power & Fuels was created to tap a lucrative market in South America: metallurgical coal. Despite obstacles, director Daniel Carlson is confident of success.
Vincent Ryan - CFO.com | US
June 27, 2011

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Winston Churchill allegedly said, "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." Daniel Carlson and the investors in Colombia Clean Power & Fuels fall in the second slot. Carlson is the former CFO and now a director of Colombia Clean Power, a subsidiary of LIFE Power and Fuels, a holding company that makes investments in fossil-energy and clean-energy technologies. The subsidiary was created a year ago to mine metallurgical coal in Colombia, South America, and turn it into coke for steelmaking.

There is good reason for Carlson and Colombia Clean Power — which has a baseline investment plan of $750 million over five years — to be optimistic. Coal prices are booming, as the price of metallurgical coal has jumped from $80 per ton in mid-2007 to $160 per ton recently. That is causing companies to plow money into coal. Arch Coal just announced the $3.4 billion purchase of International Coal Group, and Japanese trading house Itochu has secured a 20% stake in the Colombian coal assets of Drummond Co., a U.S. miner and processor.

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To succeed, though, Colombia Clean Power has to battle the perceptions that coal is a "dirty" energy source and that Colombia is a risky place to do business. Both concerns are legitimate. Regarding the first, for example, American Electric Power recently said it may shut down five coal-fired plants and cut operations at another six facilities in the United States because of possible new emission limits from the Environmental Protection Agency.

As for doing business in Colombia, political risks haven't totally subsided. Four Chinese nationals working in Colombia's oil fields were captured and held hostage — allegedly by leftist guerillas — in early June.

CFO recently spoke with Carlson about the risks and rewards of coal mining in Colombia. An edited transcript of the interview follows.

What's the opportunity for Colombia Clean Power & Fuels?
The coal-resource owners, we believe, are missing the boat in that they're just concerned about getting their resource out of the ground as fast as possible and selling it. The sweet spot is to tie a resource to an end-market with what we feel would be the most appropriate technology.

In the center of Colombia you have a lot of coal resources that have not been fully exploited because of the lack of infrastructure. The infrastructure to get the coal to the coast was not there due to the historical problems of Colombia — the Revolutionary Armed Forces of Colombia, drug dealers, etc. We feel the area is very safe now and is ripe for investment.

At the same time, Colombia is a very large agricultural country. Urea is a main ingredient in fertilizers, and Colombia imports 100% of its urea to the middle of the country. But you can "gasify" coal to make ammonia, which you can then turn into urea. So by building a urea-gasification facility in the middle of the country, you have a cheap resource in a high-priced end-market. That's what drew us to Colombia in the first place.

But your initial concentration will actually be exporting.
There's very little steel manufacturing in Colombia — there's only one plant, and it's small. But from Colombia we can easily serve Europe or Asia because of the dual coasts. One of the best markets for us for metallurgical coal would be Brazil, which has a large and growing steel industry; they have to import 100%. China has also become a net importer of metallurgical coal.

The metallurgical-coal market is tight, and customers are looking for second sources just due to the problems that have happened globally — in particular, the flooding in Australia. Colombia is a natural place to look. The U.S. has a lot, but [mining companies] are getting into thinner seams and more-difficult mining. It's still there, but it's more expensive. There's a lot of steam coal around the world, like in Inner Mongolia, but there's a very limited quantity of metallurgical coal.

The company just closed on a $22 million offering of convertible preferred stock, and through the acquisition of a shell company in May 2010 it has access to the public-equity markets. What kind of reception did you get from investors?
On the retail side, we got a good reception. We got the first few million dollars out of high-net-worth individuals. Anyone who's taken the time to do their homework on Colombia realizes that the problems are really behind the country. In fact, I've walked around Bogota in the evening many, many times and had no issues with safety. It's the longest-running democracy in Latin America. Moody's Investors Service just upgraded the country to investment grade, and we think its currency is going to be stronger versus the dollar over time. Assets are still cheap there. The workforce is educated but inexpensive.

On the institutional side, people who know coal and see what's going on with coal understand that Colombia is a great opportunity.

Did investors question the viability of coal?
You know, some funds will not touch coal. The fact is, if you want to turn your lights on, you need to have coal-fired power plants. Solar was a big bubble. The disaster in Japan has taken the wind out of the sails of nuclear. The alternative [energy sources] are just not going to have the scale necessary to make a significant impact. And so we're back to, how can we use coal more effectively? Our near-term strategy is more focused on metallurgical coal. If you're looking at steam coal for power plants, you could replace it with resources like oil or gas. You can't replace metallurgical coal.

What's working with the Colombian government like? Is there political risk?
It's a very stable government. Dealing with them is a pretty straightforward process. We've had some issues just understanding the jurisdictions. Some of these geographic areas have had no projects done of this scale. So are they controlled by the local municipality, the federal government, or the environmental department? Environmental licenses sort of trump every other license. As long as you have your environmental license, you can build your industrial facility on something that's deeded agricultural, because the federal law trumps local.

http://www.cfo.com/article.cfm/14582829/2/c_14584411

[IndoInvest]

SAN FRANCISCO, June 23, 2011 /PRNewswire-FirstCall/ -- Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF, "CCPF" or the "Company") announced today that it has received the results of a feasibility study prepared by Hong Kong Dongshi Coal Chemistry Engineering Consultancy & Management Co., Ltd. ("Dongshi") for the Company's planned 200,000 tons-per-annum coking production facility. This facility is part of the Company's strategy to provide market-ready high grade coke to the burgeoning global steel industry, in addition to mining and sale of metallurgical coal during its first phase of development and commercialization. Worldwide consumption of metallurgical coke, an essential component in steel manufacturing, increased to an estimated 595 million metric tons in 2010 (representing an estimated global market of US$270 billion at current market prices) and is expected to reach 732 million metric tons in 2013, with Asia dominating consumption.
CCPF intends to build a modern, safe, and efficient coke production plant using patented Clean-Type Vertical Heat Recovery Coke Oven ("CVHRCO") technology manufactured in China. The Company's facility would be the first of its kind in Colombia.
In Colombia, the vast majority of metallurgical coke production has traditionally utilized so-called "beehive ovens," which often produce inconsistent quality metallurgical coke with limited acceptance by major steel mills in key international markets and that can release greenhouse gases. The goal of the CCPF coking production facility is to produce high-quality metallurgical coke for sale primarily to the global steel industry.
This 200,000 ton-per-annum coke plant is expected to be built by applying the CVHRCO technology first developed and patented in China in 2003. To date, twelve coking plants have been constructed throughout China utilizing this proven CVHRCO technology. In recent years several improvements have been made to the technology and a second-generation plant is under construction in India.
"We believe the 200,000 ton facility we are envisioning will be transformative for the Colombian coal and coking industries. The technology we have identified has important features such as a low coke burning loss rate, shortened coking time, higher coke quality and uniformity, smaller carbon footprint, lower operating and capital costs, and more reliable equipment with estimated production life of over 25 years," said Graham Chapman, CCPF's Chief Operating Officer. "Importantly, for the environment, the most outstanding characteristic of the CVHRCO technology is that substantially all of the chemical byproducts, toxic gases and liquids are converted into high-temperature thermal energy during the secondary combustion in the burning chamber. We estimate this utilization of the waste heat produced from the coking process for power generation, along with other factors, will contribute to accelerated pay-back time frames and attractive returns on investment."
Dongshi analyzed the proposed equipment and technology, the characteristics of Colombian coal identified as feedstock, and proposed initial sites that are under review and analysis by CCPF. The results of the study indicate that the facility is both technically and economically feasible. Dongshi also concluded that the proposed facility conforms to the Colombian government development policies and plans and will likely enhance the coal chemical industrial development in Colombia. The establishment of the project will also likely play an important role in local and regional economic development in the municipality selected by the Company for the location of the facility. Construction and operation of the facility is expected to create over 100 jobs for the local community, including skilled positions that can contribute to human capital development in Colombia.
CCPF estimates that the total amount of coal required for the Heat-Recovery Coke Plant will be approximately 280,000 tons per year, which it expects to produce internally from one or more of its planned mining operations. In some cases, CCPF plans to purchase coking coal from other local producers for the purposes of blending and to ensure a consistent supply during full commercial production. The Company is planning to export the metallurgical coke it produces to markets such as Brazil, North America, Europe, Russia, India and China.
About Colombia Clean Power & Fuels, Inc.
Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF.OB) is developing coal mining, coal coking and clean coal technology operations in the Republic of Colombia. The Company plans to build mines to produce both metallurgical coal and thermal coal and implement advanced coal technologies, such as coal gasification and coal-to-liquids, to produce metallurgical coke, urea, liquid fuels, power and other clean energy solutions. Colombia is the world's tenth largest producer and fourth largest exporter of coal, with an estimated 7 billion metric tons ("MT") of recoverable reserves and 17 billion MT of potential reserves.
The Company's current operations are focused on coal exploration and development activities. The Company has retained leading engineering and geological services firms in the U.S. and Colombia to conduct exploration work in selected concessions acquired to date and others under consideration for acquisition by the Company. The Company's team of executives, advisors and partners is comprised of experienced entrepreneurs and business professionals in the U.S., Colombia and China that have a breadth of experience in coal mining and clean coal technologies as well as substantial industry relationships.
For more information, visit www.ColombiaCleanPower.com
This release contains forward-looking statements regarding Colombia Clean Power & Fuels future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, fluctuations in coal and energy prices, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. Colombia Clean Power & Fuels undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact: Daniel Carlson
Email: [e-mail]
Telephone [phone]
www.ColombiaCleanPower.com

[IndoInvest]

any idea whats with the sudden drop in price?

[IndoInvest]

http://pr-usa.net/index.php?option=com_content&task=view&id=760542&Itemid=29

[KyBourbon]

Greetings-
Colombia Clean Power is advancing energy with clean technologies, according to its web site.

Great Executive management team with years of experience in the industry. The company has placed primary responsibility in developing and/or enhancing Clean Energy, Clean Coal, and Renewable Energy.

A long play for my portfolio..

Great deal of possibility here in an ever expanding Clean Energy space.

KyBourbon