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MPX Energia SA

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MPX Energia SA is a Brazilian mining and energy company with operations in Brazil, Chile and Colombia. MPX Energia SA is a subsidiary of the diversified EBX Group. It is controlled by Brazilian billionaire Eike Batista, son of Eliezer Batista da Silva, a longtime head of mining company Vale. Batista has founded companies in different business sectors, mainly in mining. As of 2011, he is the eighth richest person in the world.[1]

On its website the company states that it has "a large portfolio of thermal energy projects that position it to be a leading private-sector power generator. The Company has a portfolio of 4 contracted and 7 greenfield projects in Brazil and Chile of 10 GW [gigawatts] of power generation, and also owns high-potential coal and natural gas assets in Colombia and Brazil giving it the flexibility to supply its own plants or sell natural resources in the international market."[2]

MPX's coal interests

MPX has a range of interests in coal mines, coal export ports and coal-fired power stations. As of February 2011, these projects are:[3]

  • Energia Pecem power project, a a 720 megawatt (MW) coal-fired plant which is currently under construction;
  • MPX Pecem II power project, a 360 megawatt coal-fired power station which is currently under construction;
  • MPX Itaqui power project is a proposed 360 megawatt coal-fired power station which is currently under construction;
  • Seival mine in Brazil. MPX has a 70% stake in the project with the remaining 30% held by Copelmi. The company states that "as proven reserves of 152 million tons of coal, which is more than sufficient to supply a 600 MW thermal plant for 20 years. The project has already been granted an operational license. Coal from the Seival Mine will be used to supply the MPX Sul TPP project and can also be sold in the region";
  • MPX Colombia, a subsidiary of MPX, has a range of coal interests it is developing in the country. These are:
    • MPX Port, a coal export port which it proposed would be located within a 521 hectares concession on the Colombian Atlantic coast "about 150 km from its [coal] concessions in La Guajira. The company states that the port "will have capacity of up to 20 million tons/year and a depth of 20 meters, thus being able to handle capsize vessels";
    • the Canaverales mine; the company states that the Environmental Impact Study (EIA) and the Engineering and Operating Plan (PTO) for the have been filed with the Colombian Ministry of Environment;
    • Papayal mine; the company states that the the Environmental Impact Study (EIA) and the Engineering and Operating Plan are are currently being prepared "and are expected to be filed by 1Q11";
  • Acu power project is a proposed 2,100 MW coal-fired power station which would be based on imported coal and located in the Açu Super Port. The company has touted Phase II as comprising a 3,300 MW thermal gas plant;
  • Sul thermal power project is a proposed 600 megawatt coal-fired power station in Candiota, State of Rio Grande do Sul. It is proposed that the proposed station would be supplied with coal from the Seival mine;
  • MPX is in the process of finalising the purchase of the Seival thermal power project, a proposed 600 megawatt coal-fired power station in Candiota, State of Rio Grande do Sul. The project has been granted an installation licence and would be supplied with coal from the Seival mine.

In March 2011, MPX said it plans to issue as much as 1.3 billion reais ($780 million) in bonds to finance coal and natural-gas projects in Colombia and Brazil. Brazil’s national development bank, known as BNDES, Batista and Gavea Investimentos will buy a combined 1 billion reais of the three-year convertible bonds in a private placement. Proceeds from the sale will be used to finance MPX’s coal investment in Colombia and in natural-gas production and power generation in the Brazilian state of Paraiba.[4]

Contact details

Investor relations section of website: http://mpx.infoinvest.com.br/?language=enu

Articles and resources

References

  1. The World's Billionaires: #8 Eike Batista 3 de outubro 2010 (inglês)
  2. MPX, "History and Company Profile", MPX website, accessed February 2011.
  3. MPX "MPX Portfolio", MPX website, accessed February 2011.
  4. Juan Pablo Spinetto, "Billionaire Batista's MPX Selling $780 Million of Bonds to BNDES, Gavea" Bloomberg, March 10, 2011.

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