Colombian, Venezuelan Coal Industry Likely to See Explosive Growth, New Study Concludes

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ANNAPOLIS, Md., Jan. 29 /PRNewswire/ -- Colombian and Venezuelan mines could produce 65.1 million tonnes of coal by 2006, according to Export Coal Supplies in Colombia and Venezuela, the 2002 edition of a series of multi-client studies by Hill & Associates, Inc, on the Colombian and Venezuela export coal industry.

The conclusion is dependent upon numerous conditions and assumptions made and which are explained in the study.

"We believe by 2006 Colombia will have the capability to produce 53.9 million tonnes of coal with Venezuela producing the 11.9 million tonnes balance," Jaime Correal, the author of the study, said.

The study includes a discussion of likely new developments in mines, transportation and port infrastructure in Colombia and Venezuela.

"Transportation and port infrastructure are key to the growth of the coal industry in both countries," Correal said, "especially in Venezuela where a railroad and port project are an absolute necessity before any significant export expansion can take place in the Guasare Basin."

Export Coal Supplies in Colombia and Venezuela provides a complete analysis of geology, reserves, mine ownership, quality and production.  It takes a serious look at production capacity in Colombia and Venezuela and offers a complete picture of main export mines.

"The coal industry in Colombia and Venezuela will definitely influence the global export market in the future," Correal said.  "In Export Coal Supplies in Colombia and Venezuela we offer a comprehensive, intense look at the market possibilities."

An analysis of current FOBT cash costs for each producer, and the manner  in which Colombian and Venezuelan prices might react in the international markets in the future are other important aspects of the study.

Export Coal Supplies in Colombia and Venezuela includes detailed information on the following topics:

-- Overview of Colombia and its coal industry: This section includes an in-depth description of the Colombian geography, its economy, the latest developments in governmental institutions, and a realistic perspective of the country's public order situation. The section also includes a summary of country coal reserves and locations, and a summary of the coal production and export history of major producers. Coal production and export projections for the next five years are included, based on current capacity factors and the expansion and investment plans of the producing companies.

-- Colombia's transport and port infrastructure: This chapter describes the transport and port infrastructure used by coal suppliers to export coal. It includes a review of the existing railroad capacity and the available rolling stock in each of the operating railroads as well as the projected spur lines to join coal production areas to main lines and ports. The section also includes the main roads and distances used for transporting the mineral to ports from the main coal supply areas. A review of the main exporting coal terminals includes aspects such as annual export capacity, storage capacity, maximum allowed draft, and maximum and minimum vessels sizes. The projected two new terminals in the Atlantic coast are also discussed.

-- The study dedicates a section for each main Colombian coal supplier making a description of the location in relation to port and to main Colombian cities. It includes a description of the coalfields, reviews of the coal reserves in the concession areas, characteristics of the shareholders, production capacities, coal qualities, and history of coal exports. In addition, it looks inside the mine operation, transportation systems to ports and the required support and administration for each of the following mines:

       * Cerrejon Coal Company
       * Cerrejon Central Caypa mine - Colombianos del Cerrejon
       * La Jagua - Carbones del Caribe
       * La Jagua - Carboandes
       * Drummond - La Loma Project
       * El Paso mine - La Loma
       * Calenturitas - Prodeco
       * El Hatillo - Emcarbon

-- Venezuela overview: As in the Colombian section, the study reviews the Venezuela coal industry including a summary of country coal reserves and location, and a summary of the coal production, coal qualities and export history.

-- Venezuelan transport and port infrastructure Most Venezuelan coal exports are shipped from three main terminals located in the west shore of Maracaibo Lake, which are described in this chapter.

-- The study also describes the coalfields, coal reserves in the concession areas, characteristics of the shareholders, production capacities, coal qualities, and history of coal exports. It also reviews the mine operations, transportation systems to ports and the required support and administration for the main exporting mines in Venezuela, such as:

       * Paso Diablo mine and Socuy Project - Carbones del Guasare
       * Mina Norte
       * Cosila's project - Las Carmelitas

-- Colombia and Venezuela estimated costs and market outlook: This chapter presents the estimated FOBT cash cost for each of the exporting coalmines in Colombia and Venezuela. The cost analysis includes all costs, such as waste removal, coal mining and handling, pit services, restoration, and environmental control, mine services, transportation to port, port operations, administration, and royalties and taxes. The study also discusses how this low cost production affects the market. The section also includes thermal coal price projections for 2002-2011.

Export Coal Supplies in Colombia and Venezuela is now available.  The price is $6,500.

For additional information, contact Jeff Watkins or Daniel Walton at 410-263-6616 ext. 110 /111, respectively, or Jaime Correal in Bogota at 57-1-623-7647 or at j.correal@hillandassoc.com .