Brazil's Eneva, Copelmi pen deal for coal deposit rights

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Monday, October 13, 2014

Private Brazilian generator Eneva signed an MOU with coal miner Copelmi to purchase the exploration rights to the Seival coal mine in Brazil's Rio Grande do Sul state.

Eneva and Copelmi hold 70% and 30% of Seival Sul Mineração (SSM), the leaseholder of the rights, according to an Eneva statement.

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The transaction involves purchasing, on behalf of SSM, the shares of CNMC, the current owner of the Seival mining rights, the release said.

Under the deal, Copelmi will end up with 70% of SSM and Eneva 30%. The amount to be paid, all by Copelmi, was not disclosed.

Coal supply to the of Seival and Sul thermoelectric plants is guaranteed, according to the release.

Candiota district has 12Bt of coal reserves, some 30% of Brazil's total, which is enough to supply fuel for 18GW of installed capacity for 100 years.