MPX Energia readies big Colombian coal mine project

Brazil’s MPX Energia said May 14 that it has obtained a certificate for a big coal mine in Colombia, with 92% of the mine’s production to be pulverized coal injection (PCI) coal for the steel market.

CCX, the MPX affiliate developing the project, will be independent from MPX. This will initially be a deep mine in La Guarija, Colombia. According to Leonardo Moretzsohn, President of CCX, the San Juan mine certification places the company as a world player in the coal 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,” said Moretzsohn.

The investment that will be made for production to reach its peak, which will go beyond 28 million tons/year, is estimated at about US$5.5bn, including implementation of the mine, port and railway. Note that the company uses the word form “ton,” but considering this is a Brazilian company, it is likely to mean metric tons or tonnes.

The company said it is obtaining environmental licensing to begin construction of its integrated mine/rail/port project in 2013. The beginning of production at the San Juan mine is expected for the beginning of 2017. Besides this deep mine, CCX will develop two surface mines, Cañaverales and Papayal, which will jointly produce up to 5 million tons/year. Concurrently, the company continues its exploratory drilling work in the areas near its properties with a view to future expansion.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.