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Brazil’s CCX to sell Colombia mines

World Coal,

CCX Colombia S. A., controlled by Brazilian businessman Eike Batista, has signed a Memorandum of Understanding (MoU) with Yildirim Holding A. S. to sell the company’s coal mines and transportation infrastructure for US$ 450 million.

The sale includes CCX’s open pit mining projects Cañaverales and Papayal for a value of approximately US$ 50 million, and the San Juan underground mine, including a railway and port, for approximately US$ 400 million.

Turkey’s Yildirim will place a deposit of US$ 5 million as part of the agreement, and full terms of the deal are expected to be complete by the end of the year.

Cañaverales has 27.3 million t of certified coal reserves, while Papayal has 15.6 million t of certified coal reserves.

Located in Colombia, the underground San Juan mine has one of the world's five largest coal deposits, with proven reserves of 671.8 million t.  CCX sought to develop production of 25 million tpa of coal from the mine, with enough capacity to maintain output for 20 years.

CCX had previously signed a MoU with Transwell Enterprises last month, but that agreement expired, allowing CCX to negotiate with other parties.

Adapted from press release by Katie Woodward

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