Coalcorp Acquires Interest in Atlantic Railway
Thu, 01/11/2007 - 14:55 — admin
The tariff for the transport of coal will be US$2.14/ton, a reduction of approximately 70% from the current of transport and allow Coalcorp to transport all of La Francia's production. All consortium members, including Compania Carbones del Cesar, have signed Take or Pay Agreements with respect to their guaranteed capacity. The new owners of FENOCO will be responsible for upgrading the stretch of the railway that transports the coal exports of the Cesar Department in Colombia, at a cost of approximately US$250 million for investments in a second rail line, a new communications system and rehabilitation andmaintenance of the existing line. The new concession will be capable of transporting up to 63 million tons of coal per year, or approximately double the current level of exports. Coalcorp is a coal mining, exploration and development company with 100% interests in the La Francia and La Caypa coal mines and a port facility and a number of coal exploration properties, all located in Colombia. Source: Press Release