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Glencore declares force majeure on lost coal shipments

GLENCORE's Prodeco Group which operates the beleaguered La Jagua coal mine in Colombia has report...

Justin Niessner
Glencore declares force majeure on lost coal shipments

Implementation of the force majeure clause is intended to limit the company’s liability due to uncontrollable circumstances, in this case, a workers’ upheaval.

Workers went on strike at La Jagua in the country’s northeastern coal corridor last month citing poor working conditions and pay.

Shortly thereafter, union members at Ferrocariles del Norte de Colombia railway went to the picket lines as their leader threatened to cripple the country’s export business.

According to a Reuters report, Glencore declared force majeure on lost cargoes from less than five vessels due to the union actions and was handling the cargoes on a case-by-case basis rather than with a blanket force majeure claim.

The report noted that the missing coal was from the Calenturitas mine and therefore a result of the rail strike rather than the La Jagua strike.

Media speculation on the issue predicts that Drummond, one of Colombia’s two biggest coal exporters, may also have to declare force majeure as protest rhetoric hardens in the country and opposing sides on the strike continue to entrench.

The Associated Press said 60% of Colombia’s coal exports and companies were affected since the strike began.

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