The remnants of Brazilian mogul Eike Batista’s once-sprawling empire continue to unravel, with CCX Carvao da Colombia SA planning to liquidate the rest of its holdings in Colombia, according to the BN Americas. Just a few months after selling its largest remaining asset to Turkey-based Yildirim Holding AS for $45 million USD, the mining firm has decided that commercial production at its remaining sites is not viable.
“The liquidation process of such assets will be composed of several procedures and stages that, according to the legal advisors of the company, will take at least six months,” said CCX in a statement.
Batista formerly held the claim as the richest person in Brazil before his fortunes took a turn. CCX was among his smaller companies after he spun it off in May 2012 to manage coal mine projects in Colombia, but it hit rough waters in 2013 when Batista’s EBX Group announced plans to delist the firm then postponed that move and saw two board members resign.
Months later, CCX agreed to sell off the bulk of its assets in Colombia — including open-pit mines Cañaverales and Papayal in the department of La Guajira, the San Juan underground long-wall mine, a 150-kilometer railroad, and a port project — for an announced price of $450 million USD to Yildrim Holding. The final deal was later reported by Bloomberg to be valued at only $125 million USD, however.
San Juan has 671.8 million metric tons of coal reserves, according to Bloomberg. Canaverales and Papayal’s hold 27.3 million metric tons and 15.6 million metric tons, respectively.