Prodeco, Xstrata Coal’s wholly-owned, thermal coal operation in Colombia, has received authorisation from the Colombian government to operate its proprietary port at Santa Marta, Puerto Zuñiga, for a further 12 months.
Prodeco is a member of a consortium of coal companies which will construct Puerto Nuevo, a new, multi-user, direct ship-loading port facility at Cienaga.
Early stage technical work has recently commenced at Puerto Nuevo. The port is currently expected to be completed at the end of 2012. As part of the authorisation to continue operating at Puerto Zuñiga, the Colombian government will review progress in constructing Puerto Nuevo on a rolling six-monthly basis.
Xstrata Coal recently acquired Prodeco from Glencore International AG for $2B. The acquisition completed on 3 March 2009.
The Prodeco coal operations comprise high-grade thermal coal mining operations and associated infrastructure in Colombia.
With a saleable reserve base of in excess of 250 mt, Prodeco consists of two open pit coal mining operations (the Calenturitas and La Jagua complexes), export port facilities at Puerto Zuñiga in the town of Santa Marta on the Caribbean coast of Colombia, a 39.8% share in a railway linking Calenturitas and Puerto Zuñiga and proprietary rolling stock.
