Compania Minera Autlan to Reduce Energy Costs through Petroleum Coke Synthesizer Plant

Strategic Insights -

Compania Minera Autlan is set to reduce its reliance on natural gas and lower costs by building a synthesizer plant powered by petroleum coke in Molango, Hidalgo. The Mexican mining company aims to start construction during 2005, with the goal of reducing energy consumption, which currently accounts for a large percentage of total costs. The company has obtained a credit line of US$25 million to finance the project and refinance long-term liabilities. Natural gas prices have experienced significant instability in 2004, averaging US$5.4 per million BTU in August and US$8.7 by the end of October, resulting in a 60% price increase.

Key Takeaways:

  • Compania Minera Autlan plans to build a synthesizer plant powered by petroleum coke to reduce energy costs and lower reliance on natural gas.
  • The company aims to start construction during 2005, with the goal of reducing energy consumption, which currently accounts for a large percentage of total costs.
  • Natural gas prices have experienced significant instability in 2004, with a 60% price increase.
  • Compania Minera Autlan has obtained a credit line of US$25 million to finance the project and refinance long-term liabilities.
  • The new plant will be located in Molango, Hidalgo, and will help the company reduce its energy consumption costs, currently ranging between 5% and 8% of total production costs.
  • Lorenzo Belden, finance director of Autlan, highlighted the need to reduce energy consumption and lower costs, stating that natural gas prices had increased significantly in 2004.
  • The project is part of Compania Minera Autlan's efforts to improve its operational efficiency and reduce its dependence on natural gas.

Statistics:

  • Compania Minera Autlan received a credit line of US$25 million to finance the project and refinance long-term liabilities.
  • Natural gas prices averaged US$5.4 per million BTU in August 2004.
  • Natural gas prices averaged US$8.7 per million BTU by the end of October 2004.
  • Compania Minera Autlan aims to reduce its energy consumption costs, which currently account for 5-8% of total production costs.
  • Natural gas prices experienced a 60% price increase from 2004, based on NYMEX data.

Sources:

  • Mexico Analytica/Corporate Mexico by Internet Securities, Inc. via COMTEX.
  • COMTEX (http://www.comtexnews.com) - News Provided by.
  • New York Mercantile Exchange (NYMEX) - data on natural gas prices.