The Colombian government has quashed Coalcorps (CCJ-T) plans to build a coal export port in Cartagena Bay just days after receiving reconfirmation that the project was acceptable.
Coalcorp shares fell 24%, or 13, in Toronto today, to 68 on a trading volume of 3.2 million shares.
The company has a 100% interest in the La Francia and the La Caypa coal mines. It also has interests in a railway, a river transport system and has several coal exploration properties in Colombia.
Colombian President Alvaro Uribe said his government will not allow the development of Coalcorps proposed coal port because of concerns about tourism development in the area.
Serafino Iacono, Coalcorp CEO, said he was surprised by the sudden change.
We have already received a concession grant for a port at Cartagena, Iacono said in statement.
The concession grant is subject to a environmental impact study, which has not yet been filed.
Three days ago, the Council of Cartagena overwhelmingly reconfirmed that the lands where the port is located include harbour and industrial uses, in additon to tourism, Iacono said.
He said the latest statements contradict the process that Coalcorp has been following and all of the permissions granted to date.
Coalcorp is trying to set up meetings with the president and the minister of environment to clarify the current situation.
The company also wants to demonstrate that the development of badly-needed export facilities can be compatible with tourism.
In 2006 the Coalcorp produced 3,000 tonnes of coal.
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