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Cerrejon rail rolling again

LARGE Colombian coal venture Cerrejon has reportedly restarted exports along its key railway after a section of track was bombed by guerilla fighters last weekend.

Donna Schmidt
Cerrejon rail rolling again

Cerrejon vice president of public affairs Julian Gonzalez told Dow Jones that the rail has been repaired and that normal operations resumed Tuesday evening local time.

While the attack by fighters last Saturday by the Revolutionary Armed Forces of Colombia (FARC), the country’s largest insurgent group, could have impacted exports, Gonzales confirmed to the news service that exports were not affected.

Cerrejon’s production goal of 35 million metric tons for 2011 also will not be affected, he said.

The damaged rail is part of a line that extends from the open-pit Cerrejon complex in northern Colombia to the Caribbean port of Puerto Bolivar.

Security in Colombia had reportedly improved as of late, helping to draw in natural resource investments by billionaires such as Carlos Sim and Eike Batista.

Gonzalez told Bloomberg earlier this week that FARC “wants to show they aren’t finished”

“This has been the hardest ever year for Cerrejon,” he added, citing the attacks – several foiled sabotage attempts have been logged to date this year – as well as inclement weather.

The poor weather, specifically high rainfall, has also impacted other large mines in the South American country including those owned by Glencore and the Drummond-Itochu venture, National Federation of Coal Producers president Jaime Olivella told the wire earlier this month.

Colombia, South America’s largest coal supplier, is projected to produce 75 million to 80 million metric tons this year, falling short of an 85 million metric ton forecast by the government, Bloomberg said.

Cerrejon is a joint venture owned equally by BHP Billiton, Anglo American and Xstrata.

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