MARKETS

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.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence: Automation and Digitalisation Report 2024

Exclusive research for Mining Magazine Intelligence Automation and Digitalisation Report 2024 shows mining companies are embracing cutting-edge tech

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets