Colombia's Yildirim Develops San Juan Coal Project

Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Yildirim Holding S.A. (Istanbul, Turkey), through its Colombian subsidiary (Bogotá, Colombia), is developing the US$2.8 million San Juan coal project. The transaction was valued at about US$450 million.

The project is the final part of CCX Carvao de Colombia S.A.'s (Bogotá) transfer of all of its Colombian projects to Yildirim, which began in April. CCX Carvao is a subsidiary of EBX Group (Rio de Janeiro, Brazil).

The agreement also includes Cañaverales and Papayal, two open-pit coal mines that will be located in the townships of San Juan and Barrancas, in central and southern La Guajira state, respectively. These projects have a total investment value of about US$450 million and an estimated 27.3 million and 15.6 million tons of coal reserves, respectively. They are in the "owner review of issue" stage.

The San Juan project will be about 730 kilometers northeast of Bogota. It involves the construction of an underground coal mine with an expected average production of 25 million tons per year. According to Yildirim's schedule, the company is studying the project's engineering design. Yildirim expects to complete the design at the beginning 2015. After this, the company will start the bidding process. The construction kick-off is scheduled for May 2015.

In addition to the underground coal mine construction, Yildirim is planning to build a railway and a port to complement production at the Cañaverales and Papayal mines. The estimated investment of these infrastructure projects is US$1.1 million.

The San Juan, Cañaverales and Papayal projects represent a total estimated investment of US$5.5 billion for Yildirim. These projects are the Turkish company's first operations in Colombia.

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