Production begins at Pecket, Chile’s first large scale, open-pit coal operation and world’s southernmost mine

Introduction Compania de Carbones de Chile (Cocar SA) has brought into production Chile's first large-scale, open-pit coal mine, located in the Magellan Province. The US $65 million project includes a 1.1-Mt/a (1.2-million stpy) subbituminous steam coal mine and a mechanized bulk loading marine terminal with water depth sufficient to receive 60 kt (66,000 st) Panamax vessels. The loading terminal will be one of the largest in Chile. The Pecket coal project is expected to save Chile about $40 million in energy production costs and a further $100 million in oil imports, or about 25% of the country's oil import costs. Pecket coal will generate electricity for Codelco and will also supply general electricity needs for northern Chile. The Pecket coalfield is located on the Brunswick Peninsula, about 30 km (19 miles) northeast of Punta Arenas, the provincial capital, as shown in Fig. 1. Pecket is part of a large, coal-bearing basin. It extends from Punta Arenas 250 km (155 miles) north to Puerto Natales and across the border into the Rio Turbio coalfield in Argentina. A fleet of large and small O&K hydraulic shovels and backhoes is used to dig and load overburden and coal into mining trucks while O&K graders maintain the haul roads in and around the pit. Coal occurrence in the Magellan area of Chile has long been