Shares of CCX Carvão da Colômbia S.A., the EBX Group company that is developing an integrated coal mining project in Colombia, began trading May 25 on the São Paulo Stock Exchange, said EBX, a Brazilian company.
The group’s newest publicly-traded company is considered a major player in the market, with a volume of excellent quality coal resources and a mine in San Juan that is among the top five in the world, said EBX.
The company has certified resources of 5.6 billion tons and a reserve volume of approximately 672 million tons in Colombia, where it has secured environmental licensing to begin construction, in 2013, of its integrated mining project. That project includes mines, a 150-kilometer (93-mile) railway and a private port. An investment of US$5.5bn will be made for the implementation of the underground mine and logistics infrastructure.
Production at the underground San Juan mine, located in the La Guajira region, is scheduled to begin in 2017. CCX will also develop two open pit mines, Cañaverales and Papayal, which together will produce up 5 million tons per year.
Notable is that EBX uses the word “tons,” and since it is a Brazilian company, this apparently refers to metric tons. The rapidly-growing Colombian coal industry, with investments by several international players, including U.S.-based Drummond Co., is a major shipper of coal into the U.S. East Coast market.
Another EBX affiliate, MPX, announced May 15 the certification of 5.2 billion tons of high quality coal resources in the San Juan deep mine. Total volume of the reserves reaches approximately 672 million tons, enough to guarantee average annual production of over 25 million tons per year for 20 years. At its peak, production could exceed 28 million tons per year.
While part of MPX as of May 15, the Colombian mining project was to be transferred into CCX. CCX President Leonardo Moretzsohn said: “The volume of San Juan’s resources places it among the world’s five largest for coal and its quality is excellent. As a result of its 6,200 kcal/kg gross calorific value and being PCI-type [high quality coal], it can be sold at a 30% premium above the average price of traditional thermal coal.”