The Similoa and Rincon Hondo areas are located south of the La Loma concession, bordered by El Descanso South. The project will be developed as a surface mine using a typical truck-and-shovel mining method. Drummond opted to postpone Similoa Rincon Hondo's startup as new reserves were discovered at the Pribbenow mine. This not only extended the latter's mine life but also allowed Drummond to hold on to its overall production growth plans. Similoa Rincon Hondo will produce an unwashed low-sulphur, low-ash bituminous coal destined for the export thermal coal market.