Brazil's CVRD may import coal for power supply. studying using coal to supply energy because of environmental problems with hydroelectric power, the company's president said on Tuesday.
Wed Aug 31, 2005 12:36 AM BST
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By Cesar Bianconi
RIO DOCE, Brazil (Reuters) - Cia Vale do Rio Doce, the world's No.1 iron ore miner, is studying using coal to supply energy because of environmental problems with hydroelectric power, the company's president said on Tuesday.
CVRD, which has coal projects in Venezuela, China, Australia, Mongolia and Mozambique, could import the fossil fuel for its energy needs.
"We must seek energy where it is cheap ... the idea is to see if we can bring it to Brazil at a competitive cost. At current Brazilian energy rates, coal is competitive," CVRD President Roger Agnelli told reporters.
Agnelli was speaking after opening the 140 MW Risoleta Neves hydroelectric power station in Minas Gerais state. It is a joint venture with aluminum rolled products maker Novelis Inc.
"Transport costs are very high and companies that produce their own energy aren't given credit for their investment," he said, citing a recent federal supreme court ruling that changed environmental rules, making it more difficult to get a permit.
CVRD is looking for a buyer to take its 40 percent share in a consortium building the 855 MW Foz do Chapeco power station in southern Brazil.
"The cost of carrying energy from the south to the southeast is uneconomical," he said. "We've talked to potential buyers. We won't allow the project to stop."
Agnelli was cautious when asked about the 1087 MW Estreito hydroelectric power station on the border between the northeastern states of Maranhao and Tocantins.
"The aim is to build the plant but the cost has risen sharply. We are studying with the other members of the consortium what to do," he said.
CVRD and its partners and owners produce 2,000 MW, or 4.5 percent, of Brazil's annual energy consumption.
Out of this total 800 MW is destined for the Albras aluminum smelter, controlled by CVRD, under a contract extending to 2024.
CVRD plans to produce 50 percent of its energy needs by 2010, said Murilo Ferreira, the company's director of new business.
In October, CVRD is due to open the 330 MW Aimores hydroelectric power station on the border between Minas Gerais and Espirito Santo states. It's a joint venture with power utility Cia Energetica de Minas Gerais (Cemig).
In 2006, work is due to start on the Capim Branco 1 and II power stations, with capacities of 240 MW and 210 MW, respectively, in the so-called Mineiro triangle. |
