MercoPress. South Atlantic News Agency

Chilean energy company confirms coal mining in Magallanes

Mr. Roberto Angelini

Roberto Angelini, president of the Chilean industrial Angelini conglomerate which owns petroleum distribution company COPEC, announced plans for COPEC's expansion in 2009, worth 678 million US dollars, despite the financial crisis

Angelini indicated that the investment plan includes possible expansion in the fuel market, starting with coal shipments from Magallanes (extreme south of Chile) and increasing its presence in the area of electricity generation. The group will also be investing significant funds in looking into the possibilities of ocean energy.

The company plans to invest 678 million USD this year despite a fall in profits of nearly 40% in 2008.

Angelini, nephew of the deceased founding member of the company Anacleto Angelini, reported at the meeting on Tuesday that the results for the first trimester of 2009 are expected to be up on the last period of 2008 thanks to a drop in costs, though he did not provide figures.

The planned investments include expansion of the group’s forestry and fuel operations, the largest of which will be the expansion of their coal operation in Magallanes through Minera Isla Riesco, in conjunction with the group Bon Appen, with an investment of nearly 300 million US dollars.

The president of COPEC indicated that another challenge for the company is to continue maintaining and increasing their regional presence in the forestry market where they operate through the company Celulosa Arauco. At the moment Arauco controls 6% of the world-wide market of cellulose.

“Towards the future we will continue developing our forestry strategy, expanding operations at regional level; we will complete our logistical investments in the combustible market with new plants; we will initiate the shipments of the coal from Magallánico; energy for the bicentennial celebrations; and will continue growth in electrical generation with all its different sources,” concluded Angelini in a statement. Santiago Times