Announcement of an Agreement Providing for a Study of the Possibilities of Increased Exploitation of Coal from Deposits in the Cauca Valley

'; :-t FOR IMMEDIATE .RELEASE\ • INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM,ENT 1818 H STREET, N·.W., WASHINGTON 25, D. C. TELEPHONE: EXECUTIVE 3-6360 February 12, 1963 SUBJECT: Colombia - cauca Valley coal Study The United Nations Special Fund, the Government of Colombia and the World Bank have signed an agreement providing for a study of the possibilities of in- creased exploitation, perhaps including exportation, of coal from deposits in the Cauca Valley. ;} The project was approved by the Special Fund in May 1962, and the Spdcial Fund has allocated $216,500 toward its cost. The balance, equivalent ~to -about · $120,000, will be borne by the Government of Colombia. • The World Bank will act as Executing Agency for the study and will dituurse the money made available by the Special FUnd. The study will be under the aus- pices of the Institute de Fomento Industrial and the Government of Colombia will retain the services of L'Auxiliaire Technique et Comptable (AUTECO) of Brusselp, Belgium, to carry it out. The work is scheduled for completion by the end of December 1963. Colombia has large coal reserves, perhaps the largest in South America. Its output, however, is only about 2.5 million tons annually and is consumed entirely within Colombia. With few exceptions the mines are small, and many are operated without adequate management. The deposits in the cauca Valley would seem to lend themselves to larger operations. Production, however, has so far remained limited. It is believed that a thorough economic and technical assessment of the cauca Valley deposits could result in expanded and rational e:,cploitation that would • fully meet the present and future needs of the area, provide a spur to its indus- trialization, and possibly open up opportunities for the export of coal. • ... 2 - The project now to be undertaken will consist of the collection, analysis and evaluation of information regarding the types, qualit:i.es a.rfd"''quantities of coal in the cauca Valley; a study of techniqu.es and the cost of exploiting and processing such coals; an assess~ent of the domestic market, both actual and potential, for such coals, taking into account alternative sources of energy; an investigation of potential foreign markets for Colombian coal in general and for cauca Valley coal in particular. Based on the data obtained from thesl- studies, recommendations will be made for specific projects to be carried out for the economic and efficient exploitation of cauca Valley coals • •