LOTA COAL MINING II

closed

The Schwager Coal Mine Modernization Project in Chile will meet the bulk of the foreign exchange cost of an investment program designed to complete the modernization and expansion of the mine. The company project will provide access to coal seams at lower levels than those presently worked, and amounts in practice to the opening of a new mine. It also includes the modernization and expansion of surface facilities. This project will resuscitate a dying concern by reducing the company's cost of production, and making possible an increase in annual output from the present level of about 725,000 tons (about one-third of the Chilean total) to about 1,100,000 tons. The proved reserves are adequate to support this rate of extraction for more than twenty years.