Reuters reported that shares of Brazilian energy company MPX posted their biggest daily gain in more than two years recently after controlling shareholder Mr Eike Batista said MPX would sell shares of its Colombian coal assets to investors in a global initial public offering.

Mr Batista Brazil richest man and who controls MPX through his EBX conglomerate of energy, mining and logistics companies said that MPX could raise USD 1 billion to USD 1.5 billion by selling shares in the Colombian, Brazilian and British equity markets.

Mr Batista said the IPO could take place by the first quarter of next year. MPX which owns the totality of CCX as the Colombian coal company is known, could tender a 10% stake in the company.

He said that "We will project a value of USD 4.6 billion (for the asset). If it raises USD 1 billion it will dilute 20% to raise this money for the company."

Mr Batista whose fortune is estimated at USD 27 billion by Forbes magazine, likened the quality of the CCX deposit to the Brazilian iron ore mine Carajas, which is under the control of Brazilian mining giant Vale and considered one of the best iron ore deposits on the planet.

He said initial production of thermal coal would start at about 5 million tonnes per year in 2012, rising to 35 million tonnes a year by 2015 and eventually reaching 70 million tonnes a year by 2020.

Mr Batista said the scale of the deposit was likely to yield deposits of metallurgical coal, used in making steel, which earns a considerable premium on the market over its thermal counterpart.

(Sourced from Reuters)