Mexico's CFE holds 2nd coal auction

Mexico's CFE has carried out its second electronic auction to procure 500,000t of coal from the Sabinas basin, the federal power utility said in a statement.

The coal auction was the second electronic one carried out by CFE, the first having been held on December 10 in which the utility acquired 390,000t to supply the Petacalco thermoelectric power plant in Guerrero state.

Coal acquired in this month's auction will be used to fire the José López Portillo and Carbón II power stations in Coahuila state, CFE said in October.

The second auction comprised eight lots of 25,000t and six of 50,000t each, and for which 40 companies presented bids. Starting prices were 900-910 pesos per ton.

With final offers of between 719.17 and 782.75 pesos per ton, a saving of about 132mn pesos (US$7.5mn) was achieved, compared with the prices paid by CFE under its contract with Coahuila state mining development agency Prodemi, which was for 1,008 pesos per ton.

CFE's contract with Prodemi, to supply 3.3Mt annually at a price of 1,008 pesos per ton, expires this year.

The utility said it will source 1.8Mt of coal through electronic auctions, with the next to be held in April.

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