For the La Francia operation, Masering will increase the equipment fleet at the mine site with the addition of 29 Cat 777F haul trucks, five 17-m3 excavators, two Cat 16M graders and two drill machines, which commenced in May and will continue 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/mt of coal.

Coalcorp also announced 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 began the first week of May and is expected to be finished in September. Once complete, Coalcorp will have up to 3.5 million mt capacity of annual rail access to ship its coal to the northern ocean ports near Santa Marta.

“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,” said Serafino Iacono, CEO, Coalcorp. “The rail project is an essential component of our integrated coal strategy to secure the infrastructure necessary to export our coal to international markets.” In addition to La Francia, Coalcorp owns the La Caypa coal mine and a number of coal exploration properties, all located in Colombia.