Turkish firm to buy CCX Colombian mines

FINANCIALLY troubled Brazilian magnate Eike Batista has inked a deal to sell the Colombian coal mines and transport network under his CCX subsidiary to Turkey producer Yildrim Holding in a deal worth $US450 million.

Donna Schmidt

CCX said that the transaction included the open pit mining projects Cañaverales and Papayal for approximately $50 million, as well as the San Juan underground mine, its railway and port for about $400 million.

Under the deal, the terms of which are expected to be completed by December, Yildrim will immediately make a $5 million deposit. The deal as a whole should close by April 2014.

Certain conditions must also be met to allow for the deal to close, including Yildrim’s due diligence and final negotiations and the execution of definitive agreements.

Cañaverales has 27.3 million tonnes of certified coal reserves, and Papayal has 15.6Mt of certified coal reserves.

San Juan has proven reserves of 671.8Mt; that total was certified in May 2012.

According to CCX, the facility is one of the world's five largest coal deposits. Its target production is 25 million tons per annum, and San Juan has enough capacity to maintain that annual output for two decades.

CCX previously inked a similar MoU with Transwell Enterprises in September, but that deal expired with no movements made.

According to Forbes, 56-year-old Batista’s net worth as recently as March 2013 was $10.6 billion. He first hinted several months ago that he was considering the sale of his Colombian assets.