The preliminary license attests to the environmental feasibility of the project, which foresees the development of a 600MW coal-fired plant in Candiota, State of Rio Grande do Sul.

The Seival mine, in which MPX holds a 70% stake, will supply coal to MPX Sul. The mine is located alongside the area where MPX Sul will be built. It has reserves of 152 million tons of coal and total resources of 459 million tons.

The preliminary license is said to be important to MPX Sul as it enables the sale of electricity in the regulated or the free market.

MPX strengthens its competitiveness in the Brazilian power sector with a portfolio of projects, fueled by diverse sources.