Author: PJ Murphy, CEO of Forge Resources Corp.
Forge Resources Corp. (CSE:FRG) – Our fully permitted La Estrella coal project in Santander, Colombia, has achieved several key milestones in 2025. These advancements are coupled with premium coal quality results, a favourable coal market, and improving policy environment in Colombia and beyond. Forge Resources remains focused on advancing the La Estrella project while exploring strategic opportunities to expand its presence in Colombia, a country recognized as one of the top global producers of thermal and coking coal
This article is disseminated in partnership with Forge Resources Corp. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Strengthening market & policy tailwinds in Colombia
The timing of La Estrella’s advances coincides with exceptionally favorable market conditions and a shifting policy landscape that supports coal investments. Global coal markets have seen a resurgence in the past year, with prices and demand remaining robust across both thermal and metallurgical coal segments. In Asia, steady industrial output is driving strong coal imports, while in Europe, energy security concerns and diversification efforts have sustained a need for reliable fuel sources. Thermal coal prices have been resilient amid supply constraints in key exporting regions, and steelmakers’ continued output is keeping metallurgical coal consumption high. Investors have taken notice: premium-quality projects that can supply both power and steel markets are attracting increased attention from buyers and investors alike. Meanwhile, Colombia’s government is moving toward a more pragmatic stance on energy policy. Economic pressures and public sentiment have prompted leaders to prioritize domestic energy production once again. Upcoming elections are expected to usher in a more supportive environment for oil, gas, and coal projects, as policymakers seek to stabilize exports and fiscal revenues.
Colombian President Gustavo Petro’s ban on new drilling backfired by exacerbating a domestic gas supply shortage, forcing Colombia to import fuel at high prices. With energy costs rising and the country facing a fiscal deficit, Petro’s popularity has waned and he has lost public support. As his term winds down, Colombia is “poised for an about face” on energy: most leading candidates in the upcoming election – even moderates and progressives – are pledging to put oil, gas and coal back at the forefront of policy. Even Claudia López, a prominent progressive figure and former Bogotá mayor, has publicly declared, “If God gave us oil, coal and gas — we’ll use oil, coal and gas,” underscoring the broad political consensus now forming to utilize Colombia’s fossil resources for national benefit.
Oil and coal together account for roughly half of Colombia’s export revenue, a fact not lost on policymakers. Even labour unions that once opposed fossil fuel projects have shifted stance, emphasizing the need to “guarantee Colombia’s energy self-sufficiency”. All signs point to a more positive, stable operating environment for coal producers.
For Forge Resources, this sea-change in Colombia’s energy policy is highly encouraging. La Estrella is situated in the Santander department – an established energy and mining region – and stands to benefit from renewed government support for coal mining. The project’s full permitting demonstrates its strong environmental compliance and community consultation. Now, with the national climate more welcoming to resource projects,
According to the Energy Institute’s Statistical Review of World Energy 2025, global total energy supply in 2024 reached approximately 592 exajoules (EJ), of which coal accounted for around 165 EJ, roughly 28 per cent of the world’s energy mix. This data underscores that, far from being a marginal or declining resource, coal remains a foundational pillar of the global energy system. For a company like Forge, this enduring role reinforces the strategic case for continued investment, production, and innovation in the coal sector, particularly in regions and markets where supply stability, cost-competitiveness, and reliability are essential.
Moreover, the report highlights that fossil fuels collectively supplied about 86 per cent of the world’s primary energy in 2024, with coal, oil, and gas continuing to meet the bulk of global demand. This trend demonstrates that the world’s energy architecture will remain dependent on coal for the foreseeable future even as renewables expand offering producers positioned in the coal industry an opportunity to secure market share and underpin energy security during the ongoing transition. For Forge, this context reinforces that its investments in high-quality, low-impurity coal assets are not only relevant today but integral to supporting balanced, reliable global energy supply in decades ahead.
Forge can accelerate with confidence that its investment in Colombia is aligned with the country’s economic priorities and world energy consumption mix. The combination of supportive local policy, strong community partnerships, and Colombia’s recognition of coal’s importance to the economy adds yet another layer of appeal to the La Estrella project.
- Market optionality: La Estrella’s coal can cater to two high-demand markets (thermal power and metallurgical steelmaking) due to its unique specs. This flexibility maximizes sales opportunities and price negotiation leverage. Current global trends show persistent demand and pricing in both coal sectors, a trend likely to continue amid energy security concerns.
- Supportive jurisdiction: Colombia’s pivot back to fossil fuel development reduces regulatory uncertainty. The incoming government is expected to foster investment in coal and oil projects to bolster exports and fiscal revenues. As a fully permitted mine, La Estrella is at the forefront to capitalize on any pro-mining initiatives or incentives.
The ultimate objective is to scale La Estrella into a long-life, high-output mine supplying export markets. With its mix of technical progress, commodity upside, and a favorable geopolitical setting, Forge Resources is confident that the La Estrella project will deliver substantial value.
2025 milestones: Building a world-class coal operation
In 2025, Forge Resources has aggressively advanced La Estrella on multiple fronts, laying a strong foundation for continuous operations and future cash flow. Key development milestones achieved this year include:
- Round-the-clock operations: Completion of critical infrastructure upgrades, including installation of on-site power and lighting, to enable 24-hour, three-shift mining operations.
- Enhanced site access: In partnership with local municipalities, Forge continues to perform upgrading and maintenance of 10 km of access roads to the site. Road widening, grading, and surface reinforcements were completed with municipal support, improving logistics for heavy equipment and benefiting nearby communities through safer transportation routes.
- Mining camp construction: The Company constructed initial on-site worker camps to support its growing workforce. As of October, the camp facilities – 12 rooms with 6 sanitary units – are 95 per cent complete, with foundations engineered to add a second floor as the project scales up. These accommodations will house over 24 personnel and ensure workers’ well-being for sustained 24/7 operations.
- Mechanization and equipment: Forge invested in modern mining equipment to boost efficiency and safety. Notably, a new Panzer conveyor system was delivered on-site, a key step toward fully mechanized coal haulage. The Panzer conveyor will automate the removal of rock and coal from the decline, reducing reliance on diesel equipment, lowering emissions and costs, and improving worker safety. This equipment upgrade aligns with the Company’s strategy to develop streamlined, automated coal extraction at La Estrella.
- Underground Development and First Coal Encounter: The decline tunnel development has advanced efficiently, and in July the team intersected its first coal seam underground. The seam was safely exposed, extracted, and brought to surface for analysis.
A major highlight for the project this year was the confirmation of exceptional coal quality from La Estrella. Forge Resources reported “excellent labouratory results” from the analysis of the coal extracted in July. According to SGS Labs assays, the sampled coal is a premium-grade product with:
- High energy content: Calorific value measured up to 13,846 BTU/lb, indicating a very high-BTU thermal coal – well above typical thermal coal benchmarks. This means La Estrella coal can obtain premium pricing in power generation markets requiring high-energy coal.
- Very low sulfur: Sulfur content was as low as 0.82 per cent by weight, a desirable trait that makes the coal cleaner-burning and more attractive to buyers, given increasingly strict emissions standards.
- Low ash and moisture: The coal also showed low ash and moisture levels, which improve combustion efficiency and reduce waste, further enhancing its market value.
Coking properties: Notably, the coal demonstrated a favorable Free Swelling Index (FSI), meaning the coal can serve not only as thermal coal but also as a blending component in metallurgical (steelmaking) coal mixes. The ability to meet coking coal specifications adds a second market for La Estrella’s product.
Forge Resources CEO, PJ Murphy, emphasized the significance of La Estrella’s recent results, noting that “high-quality coal from strategically located projects—particularly those with the flexibility to serve both thermal and metallurgical markets—are attracting heightened interest from buyers and investors worldwide.” He added that labouratory assays confirm La Estrella’s ability to produce premium-grade coal with very high BTU, low sulfur, and low ash content, making it a sought-after product for both power generation and steelmaking applications. This dual-market versatility, Murphy explained, enhances the project’s value and positions Forge to advance toward future commercialization as global demand continues to favor reliable, high-quality coal sources.
Premium, low-impurity coal such as La Estrella’s is in high demand globally, and Forge Resources is poised to capitalize on that demand as it advances toward initial commercial shipment.
About Forge Resources Corp.
Forge Resources Corp. is a Canadian-listed junior exploration company. The Company holds an 80 per cent interest in Aion Mining Corp., a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. La Estrella contains eight known seams of metallurgical and thermal coal. The Company also holds an option on the Alotta project, a prospective porphyry copper-gold-molybdenum project located 50 km south-east of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in the Yukon Territory of Canada.
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