Operations Outlined For Venezuela’s Paso Diablo Coal Project

The Paso Diablo coal project is located in the Guasare Basin in the northwestern region of Venezuela near the border with Colombia. In 1987, Carbones del Guasare SA, a joint venture comprised of Carbozulia and A.A. Antilles Coal (an Arco and AgipCoal joint venture) was formed to develop the Paso Diablo coal reserves for world markets. Regional drilling has indicated a coal resource of more than 6 Gt (6.6 billion st). Further exploration has delineated the Paso Diablo deposit as an area particularly suited for cost-effective surface mining. The calculated economically minable reserves of this area (200 Mt or 220 million st) and the coal quality characteristics are based on extensive core drilling programs. Initial coal mining operations began in August of 1987 and the mine is presently producing at a rate of 1.5 Mt/a (1.65 million stpy). The coal is hauled about 85 km (53 miles) to a barge loading terminal at Santa Cruz de Mara using highway-type haul trucks. When the coal reaches the terminal, it is loaded into barges and then transloaded onto ocean-going vessels with barge mounted