CCX seals sale of Colombian coal assets to Yildirim

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Tuesday, September 20, 2016

Brazil-based coal miner CCX has signed a definitive agreement for the sale of its assets in Colombia to Turkey's Yildirim Holding for US$45mn, the company said in a filing to the country's securities regulator CVM.

CCX is part of fallen Brazilian tycoon Eike Batista's troubled logistics and resources conglomerate EBX.

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The price includes an upfront payment of US$30mn made to CCX when both companies agreed with the sale's conditions, the filing said.

In March 2014, Yildirim signed an agreement with CCX to buy the latter's Colombian coal assets for US$90mn.

But in an abrupt about-turn, Yildirim pulled out of the deal in October 2015 and requested the Brazilian company return the first installment that was paid for the assets. At the time, Yildirim claimed CCX had not met all of the deal's conditions.

The move led to CCX asking for an arbitration case against Yildirim. The arbitration was suspended in August.

CCX assets in Colombia include the San Juan underground project, along with two open-pit projects (Cañaverales and Papayal) and associated infrastructure, such as a port and railroad.

Located in La Guajira department in northern Colombia, Cañaverales and Papayal have 27.3Mt and 15.6Mt of certified coal reserves, respectively. Both have estimated capacity of 2.5Mt/y. The San Juan underground project has proven reserves of 672Mt.

CCX coal assets in Colombia.