Cerrejon employs about 10,000 in Colombia and is equally owned by Xstrata, Anglo American and BHP Billiton.

Officials said it opted to postpone studies on the planned 16-mile diversion of the Rancheria River in northern Guajira.

While prices and economic conditions were cited as impetus for the decision, some media reports, including Dow Jones noted the initiative had met with environmental pushback, with groups arguing the already fragile ecosystem in the area would become dried out.

The producer did not indicate whether protests played a role in its decision.

“Cerrejon had communicated that the river diversion was one option being considered as part of [its] broader studies into possible expansions beyond the current expansion project,” officials said late Thursday.

The company, under a $US1.3 billion growth plan, had looked at the diversion as an option that would increase output to 40 million metric tons per annum of coal by 2015 from 32Mtpa.

“The studies that have been undertaken to date in relation to the partial diversion of the Rancheria River, as well as the feedback received from the communities during the process, should be the baseline for the development of the project at a future time, should conditions permit,” officials said.

“In the meantime, Cerrejon will continue to review alternative growth options beyond the current expansion project that do not involve a diversion of the Rancheria River.”

It confirmed it would also remain committed to the plan along with its effort to bring 5000 jobs to the region.

Colombia is the fourth-largest coal exporter in the world.

Production in 2011 was 87Mt.