The Guasare Coal Project

The Guasare Coal Project is located a short distance from Lake Maracaibo, in the Northwestern region of Venezuela. In 1987, Carbones del Guasare, a joint venture comprised of Carbozulia, ACC Venezuela, a subsidiary of ARCO, and AGIPCoal of ENI Group, Italy, was formed to develop the Guasare coal reserves for world markets. Drilling with the Venezuelan state of Zulia has indicated a coal resource of over 6 billion metric tons. Further exploration has delineated the Guasare deposit as an area particularly suited for cost-effective surface mining. The calculated mineable reserves of this area (300 million metric tons) and the coal quality characteristics are based on extensive core drilling programs.