Mexican state power company awards Glencore multinational coal purchase for US $520 million

The Mexican state-owned Federal Electricity Commission (CFE) said on Tuesday it will buy 4.94 million tons of coal from global operator Glencore International AG, after awarding them with a total of 12 contracts auctioned.

The coal will be used to supply the Plutarco Elías Street thermoelectric plant in Guerrero, and with the purchase the CFE expects to generate more than 518,000 megawatts (MW).

This extra generation would represent an income for the company of more than 1,000 million pesos (US $52.7 million), it said in a statement.

“The winner of the 12 items auctioned was the company Glencore International AG, in view of the fact that in all the auctions it offered the best Gigacaloría price, with respect to the rest of the participants,” said the CFE.

According to the company, the deliveries will be between May and December 2019.

In total, the contracts add up to around US $519.6 million dollars, said a CFE spokesman.

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