OREANDA-NEWS. May 17, 2012. Proved reserves run up to a total of 672 million tons, with total resources reaching 5.2 billion tons. Volume of resources places the mine among the five largest coal mines in the world. CCX will be a company independent from MPX, with stocks listed in Novo Mercado BM&F Bovespa.

MPX, EBX Group’s energy company, owned by entrepreneur Eike Batista, announced this Monday (5/14) a certification of 5.2 billion tons of high quality coal in the subterranean mine of La Guarija, Colombia.

The volume of reserves reaches approximately 672 million tons, guaranteeing an average production superior to 25 million tons/year during 20 years and possibly exceeding 28 million tons at the height of production; of the total certified as reserves, more than 92% comprises high quality resources, considering its PCI, reinforcing the importance of this discovery.

The volume of reserves was certified by Golder Associates, and the total of resources by AMEC Americas Limited. The mining project in Colombia, which includes the logistics dedicated system, will be split from MPX, forming a new and independent company with stock listed in Novo Mercado BM&F Bovespa: CCX Carvao da Colombia S.A.

Among the five largest coal deposits in the world

According to Leonardo Moretzsohn, President of CCX, the San Juan mine certification places the company as one of the great world players of the coal mining market. “The volume of resources in San Juan is among the five largest mineral coal deposits in the world and has superior quality. Due to a calorific value superior to 6,200 kcal/kg and being PCI type, it can be negotiated with a premium of 30% above the average traditional thermal coal price”, says Moretzsohn. The investment that will be made for production to reach its peak, which will go beyond 28 million tons/year, is estimated in USD  5.5 billion, including implementation of the mine, port and railway, which will have an extension of 150km.

The company presently is in the process of obtaining environmental licensing to begin construction of its integrated mine protect – mine, railway and port – in 2013.

The beginning of production in the subterranean mine of San Juan is expected for the beginning of 2017. Besides this subterranean mine, CCX will develop two open air mines, Canaverales and Papayal, which will jointly produce up to 5 million tons/year. Concurrently, the company continues its drilling works in the areas near its properties with a view to future expansion of the endeavor. The results obtained south of San Juan were positive and confirmed the initial expectation regarding the existence of coal in the La Guajira Department. The result of the certification considered an area of 10,000 hectares of the 67,000 hectares conceded in mining rights owned by the company. Besides, additional concessions in the Cesar region offer an even higher growth potential for the company’s businesses in Colombia.

Result – MPX closed the first quarter of 2012 with an investment superior to BRL  500 million in the construction of four endeavors in Brazil:  plants Energia Pecem, Pecem II (Ceara), Itaqui and Parnaiba (Maranhao). With the works reaching significant progress in the assembly and installation of equipment, plants Energia Pecem (720 MW) and UTE Itaqui (360 MW) will become operational in 2012.  UTE Pecem II and the first phase of Parnaiba plant will start generating energy in 2013. With 1,553 MW of contracted energy, Parnaiba will be the biggest natural gas powered thermal complex in Brazil. MPX investments in these four endeavors correspond to guaranteed revenues in long term contracts adding up to approximately BRL  24 billion.

In the first quarter of 2012, the net operational revenue reached BRL  75.7 million, with a 86.7% growth in relation to the same period in 2011. This result was obtained primarily due to the amount of energy sold by MPX Comercializadora (MPX’s energy commercializing company). In pre-operational phase, the company registered a negative financial result of BRL  77.5 million in the first quarter of this year. The value suffered an impact from operational costs and from the costs of assembly of operating structure and plant implementation, as well as the development of the integrated mining project in Colombia.