The three holders of the remaining 50%, Glencore International, Anglo American and BHP Billiton, are in discussion with the oil company to buy out its stake in the large thermal coal mine, valued at USUS$550-600 million. Colombia’s Mining and Energy Minister Luisa Fernanda Lafourie meanwhile told media the deal was practically sealed.
CZN is one of the world's largest open-pit coal mines, and ownership in the project entitles shareholders to top-class infrastructure, including connecting railway and port facilities. In 2001, the mine produced 19.4 million tons of thermal coal and has brought unit costs down 30% since 1997.
Glencore, Anglo and BHPB also own the Cerrejon Centro and Cerrejon Sur coal mines, close to CZN in northern Colombia's Guajira area. The consortium purchased its 50% stake in CZN from the state last October for US$384 million plus debt, together with an option to negotiate the purchase of the remaining 50% held by ExxonMobil via subsidiary Intercor.
The three partners are believed to have plans to more than double production at the northern zone from 23 million tons to some 50 million tons.
Just over a year ago, Exxon disposed of stakes in two Australian coal mines. Following the sale of its interest in CZN, ExxonMobil's sole coal asset will be the Monterey No 1 longwall mine.
