The company, through its wholly owned subsidiary, currently owns a 14% interest in Chianto, which owns 100% of CI Norcarbon (of which 16.66% is held in trust by Aleman Cordero Galindo & Lee Trust).
CI Norcarbon is title owner of 100% of the mining rights for the La Divisa mine (Cerro Largo).
In December 2010, Pacific Coal entered into an option agreement for the irrevocable and exclusive option to acquire the remaining 86% of Chianto for $75m from Valle Eden Group and Sunny Isles Holding.
This option agreement was exercised and Pacific Coal will retain a 100% interest in Chianto and full title to the La Divisa mine property and operations.
Production at the mine has been over 300,000 tonnes of thermal coal in 2010 and has a forecasted production of 600,000 tonnes of thermal coal for 2011.
Underground mining operations have terminated and the mine will be operated as an open pit mine.
