BHPB inks Colombian coal deal

TORONTO-based Coalcorp Mining has entered a deal with resource giant BHP Billiton, covering the majority of Coalcorp’s exploration portfolio in Colombia.

Staff Reporter

Under the deal, BHPB will be granted a 50% interest in any deposit discovered by funding 100% of exploration expenditures.

The global miner will earn a further 10% in the deposit by funding all expenditure through completion of a feasibility study and assisting Coalcorp in arranging financing for its share of development costs.

The portfolio, which consists of 61 properties totalling approximately 214,000 hectares, excludes the currently producing Caypa and La Francia properties and the neighbouring La Francia II property.

Coalcorp chief executive Serafino Iacono said the partnership with BHPB would accelerate the exploration and possible development of the company’s portfolio.