Thursday, April 2, 2009

Vale Acquires Colombian Coal Assets

Brazilian mining giant Vale said on Wednesday it had completed the acquisition of coal assets in Colombia for $305.8 million.

The assets include El Hatillo coal mine, the Cerro Largo coal deposit, a minority stake in the Fenoco consortium that operates a railroad linking coal mines to a port, and the concession of the Rio Cordoba-SPRC port on Colombia's Caribbean coast.

All assets were bought from Cementos Argos S.A., Vale said in a statement.

Vale, which still gets most of its revenue from iron ore, is seeking to build a coal asset platform in Colombia, the world's third-biggest exporter of high-quality thermal coal.

Vale already has coal operations in Australia and is involved in two joint ventures in China that own a coal mine and a coke plant. The Brazilian company is also developing a large coal project in Mozambique.

Source: Reuters

No comments: