INTERNATIONAL COAL NEWS

Colombian govt works with Drummond for alternate loading

THE government of Colombia is examining other ways for US-based Drummond Coal to continue shippin...

Donna Schmidt

Drummond, which produces about one-third of the coal Colombia exports annually from its mines, was violating regulations that came into effect on January 1 mandating automated loading systems.

According to Reuters via regional newspaper El Espectador on Friday, Mines and Energy Minister Amylkar Acosta said there were other private ports in the area that were in compliance and with the capacity to load more coal.

He cited Prodeco’s Puerto Nuevo facility, which neighbours Drummond’s idled load-out.

Prodeco, owned by Glencore Xstrata, is also being eyed by another non-compliant miner, the much smaller Colombian Natural Resources, as a potential option.

In December the government said that any exporter out of compliance would be subject to daily fines.

Last week, however, it reversed its decision and ordered Drummond’s port to be shut down – much to the surprise of the European coal market, which had been anticipating the former scenario.

Should the mines be forced to idle loading long-term with no other alternatives, the export market of the country could be significantly slashed.

However, Acosta seemed to indicate to Reuters that officials might have a way to force compliant facilities like Prodeco to carry the coal of its rivals.

“We are seeing what capacity Puerto Nuevo has and the port of Santa Marta,” Acosta said.

“Private companies cannot shut their conveyor belts off and prevent access to the ports.”

Drummond is expected to have its new system completed by March.

In a separate Reuters interview on Friday CNR said it had not yet started construction and a 16-18 month construction period might not commence for a few weeks.

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