Coal and oil will make Magallanes “Chile's energy centre”

"The coal mining project at Isla Riesco in a context of world energy crisis has become strategic, because we need to diversify our energy matrix", said Tokman during a visit to Punta Arenas. The Isla Riesco four exploitable areas have proven reserves of 200 million tons of coal, so far the largest in Chile. Tokman also emphasized the significance of the hydrocarbons exploration drive in Magallanes and Tierra del Fuego which has attracted "important oil companies and millions of US dollars in investments". Tokman praised the decision from Chilean companies Copec SA and Ultramar SA that decided on the purchase option for the coal reserves, which will help Chile "cut its foreign energy dependence; this is vital since it insulates us from the turbulent price variations of international markets". Chile dependence on foreign coal supplies for electricity generation is 93%, but with the development of the Isla Riesco resources, "we will ensure stability to our generating plants". "Besides the development of coal reserves will give a huge boost to the economy and development of Magallanes region", he underlined. Tokman revealed that in spite of the world recession, the energy sector in Chile remains committed "to invest 21 billion US dollars in expanding and upgrading existing