Eike Batista's CCX to sell some Colombian coal assets to Turkey's Yildirim for $450 mn

CCX Carvao da Colombia SA, the coal mining unit of Brazilian businessman Eike Batista, yesterday said that it has reached a preliminary agreement to sell some its Colombian mining assets to Turkish group Yildirim for $450 million.

CCX will sell its open pit mining projects Caņaverales and Papayal for $ 50 million and its San Juan underground mine, including associated logistics comprising of railway and port, for approximately $ 400 million.

Yildirim will pay CCX with an upfront and non-refundable deposit of $5 million as an exclusivity fee for continuing negotiation of the potential transaction.

CCX and Yildirim are expected to enter into the definitive agreements by late December 2013.

CCX had signed a memorandum of understanding with Transwell Enterprises last month, but that agreement expired, allowing CCX to negotiate with other parties, CCX said in a statement.

Caņaverales has 27.3 million tons of certified coal reserves, while Papayal has 15.6 million tons. These deposits are located in the Departamento de La Guajira.

San Juan has proven reserves of 671.8 million tons and its port concession for the development of a deep water private port in Dibulla, La Guajira, was approved by the Colombian government early this month.

Yildirim invests in a wide range of industries such as mining and ferroalloy production, coal and energy, fertilisers and chemicals, port management, shipping and shipbuilding, private equity and real estate development.

It is the third-largest coal trader in Turkey, with 2012 revenues of $1.02 billion.

This is the latest disinvestment by the Brazilian former billionaire who has sold stakes in his energy, logistics and mining units in order to repay debt. He is said to preparing to file for bankruptcy protection for his oil company OGX Petroleo & Gas Participacoes SA.