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Brazilian coal miner CCX has decided to liquidate its remaining assets in Colombia, including relinquishing local mining concessions, it said in a statement late Friday.
CCX, part of fallen Brazilian tycoon Eike Batista's troubled logistics and resources conglomerate EBX, sold the largest of its Colombia assets to Turkey's Yildirim Holding for US$45mn in mid-September.
Now, the miner claims that commercial production at its remaining concessions is technically, economically and financially not viable and attempting to sell the assets would be impracticable, CCX said in a statement.
"The liquidation process of such assets will be composed of several procedures and stages that, according to the legal advisors of the company, will take at least six months," CCX said.
According to the statement, shareholders will meet on December 27 to greenlight the process.
CCX's original assets in Colombia included 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. San Juan has proven reserves of 672Mt.