Expansion to More Than Double Capacity of Brazil's Largest Coal Mine

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Researched by Industrial Info Resources (Sugar Land, Texas)--Brazilian coal-mining company Companhia Rio Grandense de Mineracao (Porto Alegre), is moving forward with a $240 million expansion of the Candiota mine, the largest operational coal mine in Brazil.

The mine is located about 400 kilometers from Porto Alegre, the capital of Rio Grande do Sul State in southern Brazil. The mine's annual capacity will be expanded from 2 million to 5 million tons. In addition, the project entails the construction of a dry processing plant, hich will improve the ore mining quality. A detailed engineering study is expected to be complete by the end of the year, and the request for quotations for the main equipment is scheduled to take place in the beginning of 2009. Construction is expected to begin in mid-2009 and not last more than six months.

The project aims to fulfill a supply contract the company signed with its main client, Companhia de Geracao Termica de Energia Eletrica (CGTEE) (Porto Alegre), a state-owned Brazilian company and subsidiary of Eletrobras (Rio de Janeiro). CGTEE is currently developing an expansion project at the Usina Termeletrica Presidente Medici Power Plant, which is known as the 350-megawatt Candiota III coal-fired power plant. Upon completion, CGTEE will increase energy production capacity by 100%. From the 1.4 billion-ton Candiota coal reserves, about 150 million tons are being blocked to supply the power plant for a period of 30 years. For further details, see June 10, 2008, article - Eletrobras Subsidiary Moving Forward with Expansion at Candiota Thermoelectric Plant.

Companhia Rio Grandense owns coal reserves at about 3 billion tons. Besides Candiota, the company operates three other coal mines in Rio Grande do Sul: Leao I, Leao II and Irui.

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