Chile - Schwager Coal Mine Modernization Project

__ 1WKF RTIP T lESK R E S T R I C T E D tILE Mmf l- WITHINi I Report No.T0-145a ONE WEEKI I This report was prepared for use within the Bank. In making it available to others the Bank assumes no reSnnncihilift to hem for | --...s ~vw.Bwlty S11I II u the accuracy or completeness of the information contained herein.! INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPRAISAL OF THE COMPANIA CARBONIFERA Y DE FUNDICION SCHWAGER COAL MINE MODERNIZATION AND EXPANSION PROJECT CHILE July 9, 1957 Department of Technical Operations  CURRENCY EQUIVALENTS $1 = 650 pesos Pesos 1 million = $1,538.46 L 1 = 1820 pesos Pesos 1 million = L 549.45 Alil LOnS are metric tLons. The Company's fiscal year enas December 31.  APPRAISAL OF THF, COMPANIA CARBONIFEYTD FUNDICION SCHWVAGER COAL MINE IMODERNIZATION AND EXPANSION PROJECT CHILE TABLE OF CONTENTS Paragraphs Summary and Conclusions A-N I. INTRODUCTION . . . . . . . . . . . . . . 1 - 2 TI. THE COMPANY. . . . . . . . . . . . . . . . . . . . . 3 - 2L History and Present Operations . . 3 - 9 Special Risks . . . . . . . . . . . 10 Management and Ownership . . . . . 11 - 12 Labor . . . . . . . . . . . . . . . 13 Erwinan Rcord anfi Financial pbsition . . . . . . . 14 -*2 III. THE PROJECT . . . . . . . . . . . . . . . . . . . . 25 -6 General . . . . . . . . . . . . . . 25 Coal P.eseres .26- 27 Development and Constrct-ion. Plans - e- 28 = 31 Wlork Completed to Date . . . . . . 32 - 33 Plnn ngJ.LA.& j..ja. JIt+ ,,n J .. . .).. Engineering and C or t r u LctJion ICnage- m . e 3 Construction Schedule . . . . . . . 36 Et u-jatxeu In-vestm,entI Requir-ements . . . . . . . . . . 37 -42 J t LJJAJ Eti. . . . . . . . l-3 Labor Requirements . . . . . . . . i4 Supe.-tision at tlhe F ace ... . . . L5.- Future Development . . . . . . . . 46 IV. THE MARKET . . . . . . . . . . . . . . . . . . . 47 - 52 V. ECONOMIC JUSTIFICATION . . . . . . . . . . . . . . . 53 - 55 VI. FINANCING PLAN AND FINANCIAL PROJECTICFO . . . . . . 56 - 63 Financing Plan 00999999*... ....... 56 -57 Financial Projections . . . . . . . 58 - 63 vII. PEuFOSED -RDTECTrvE FINANCIAL ARRAGIEMENTS .... 64  - 2 - ANNEX 1 Map of Northern and Central Chile ANNEX 2A Summary Balance Sheets, 1951-1956 ANNEX 2B Summary Profit and Loss Statements, 1951-1956 ANNEX 2C Sources and Allocation of Funds, 1952-1956 ANNEX 3A Construction Schedule ANNEX 3B Schedule of Development Drivages ANNEX h The Market for Coal ANNEX 5 Costs and Earnings Projections ANNEX 6 Cash Flow Projections  APPRAISAL OF