Colombia’s Cerrejon sees coal output fall by 4.6% in 2013

Cerrejon

Colombia’s Cerrejon mining conglomerate announced Monday that production at its coastal coal site fell to 36.3 million tons in 2013, a 4.6% decrease from 38.1 million tons of the previous year.

In explaining the lowered production rate, Cerrejon cited a difficult set of circumstances including a drop in global coal prices that affected the worldwide industry.

Owned as a joint venture by Anglo American Plc, BHP Billiton and Glencore Xstrata Plc, Cerrejon was one of a number of industry leaders in the mining and petroleum sectors to see production drop amid extended labor disputes during 2013.

MORE: Strikes take serious hit on coal industry, national GDP

According to the company, a series of guerrilla attacks on its railway transport line to its Caribbean port did not effect exports, thanks to an aggressive contingency plan.

Colombia is the world’s forth-largest exporter of coal. Most coal currently produced in Colombia heads to fuel electricity demand in Europe. Behind oil, coal is the country’s second-most valuable resources, according to Reuters.

In contrast to U.S.-based Drummond Ltd., Colombia’s second-largest mining operation, Cerrejon uses a conveyor belt to load coal into ships at its Caribbean port. Drummond is currently facing a disruption in exports as Colombian authorities shut down its port after the company failed to install a conveyor belt on schedule.

MORE: Alternatives don’t float boat for US coal giant Drummond

Located in the northwest state of La Guajira, Cerrejon is one of the largest open-pit mines in the world.

Sources

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Written by Rico

Rico

"Rico" is the crazy mind behind the Q media websites, a series of onlinemagazines that includes TodayColombia.com. Rico brings his special kind of savvy to online marketing. His websites are engaging, provocative, informative and sometimes off the wall, where you either like or you leave it. The same goes for him, like him or leave him.There is no middle ground. No compromises, only a passion to present reality as he sees it!