Vale announced that it entered into a purchase
and sale agreement to acquire
100% of the export coal assets of
Cementos Argos S.A. (Argos), a Colombian
cement producer, for $300 million.
Located in the Cesar department, Argos
coal assets consist of two mining concessions:
El Hatillo, an open-pit mine, with
expected 2008 production of 1.8 million
metric tons (mt) of thermal coal ramping
up to full capacity 4.5 million mt/y by
2011; and Cerro Largo, in the exploration
stage. Together these mining concessions
have potential for 500 million mt of nonaudited
geological resources.
Las Cuevas deposit, part of the El
Hatillo mining concession, presents the
highest potential for additional resources,
and Vale has agreed to make an extra payment
at fixed price per metric ton of measured
and indicated resources exceeding
50 million mt, after a confirmatory drilling
campaign to be concluded within two
years.
Argos coal logistics assets are also
included in the deal.
As featured in Womp 09 Vol 01 - www.womp-int.com