CRM to produce 2.2Mt of coal in 2005
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[December 29, 2005]

CRM to produce 2.2Mt of coal in 2005

(BNamericas.com Via Thomson Dialog NewsEdge)Brazilian mining company CRM is on track to produce 2.2Mt of coal in 2005, a 30% increase compared to last year thanks to electric power sector demand, a company spokesperson confirmed to BNamericas.



Rio Grande do Sul-based CRM's gross revenue is expected to come to 91.0mn reais (US$38.8mn) this year, up 40% compared to 63.1mn reais in 2004.

"This is a great moment for coal and the outlook is promising for the next few years, when we will increase our sales to Candiota III coal-fired power project," CRM president Joo Carlos Vieira was quoted as saying.



The mining company expects to increase coal production to 4.2Mt starting 2009 to supply Candiota III, CRM said in a statement.

Candiota III is due to start operations in 2010, while CRM will supply more than 4Mt/y of coal. Candiota III is owned by the CGTEE unit of federal power holding company Eletrobrs.

"In order to prepare the Candiota coal mine for this production increase, CRM will have to invest at least 20mn reais in 2006," Rio Grande do Sul state mines and energy secretary Valdir Andres said.

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