Reuters quoted Brazil power generation and coal resource prospector MPX as saying that it had bought 800,000 tonnes of Colombian thermal coal in the last two or three weeks for its power plants in Brazil.

Mr Gustavo Gomes COO of MPX for mining and gas said "Right now we bought coal 800,000 tonnes of thermal coal for our plants two, three weeks ago.”

He said that "It's a scheduled supply so basically we're buying roughly what is required for next year."

Mr Gomes declined to give details on the seller or price, but said the purchase would be the only one this year. He said that Construction of mines should begin in July 2011 after MPX receives government approval.

Mr Gomes said the open pit operations should start in mid 2012 and produce initially 0.5 million tonnes. MPX coal areas are located in La Guajira province near the operations of Colombia largest exporter Cerrejon. He said that "The ramp up will be quick."

Mr Gomes said on the sidelines of a coal conference in Colombia that the open pit part of the coal operations has 200 million tonnes of resources and 40 million tonnes of minable reserves.

(Sourced from Reuters)