MARKETS

Colombian govt works with Drummond for alternate loading

THE government of Colombia is examining other ways for US-based Drummond Coal to continue shippin...

Donna Schmidt

Drummond, which produces about one-third of the coal Colombia exports annually from its mines, was violating regulations that came into effect on January 1 mandating automated loading systems.

According to Reuters via regional newspaper El Espectador on Friday, Mines and Energy Minister Amylkar Acosta said there were other private ports in the area that were in compliance and with the capacity to load more coal.

He cited Prodeco’s Puerto Nuevo facility, which neighbours Drummond’s idled load-out.

Prodeco, owned by Glencore Xstrata, is also being eyed by another non-compliant miner, the much smaller Colombian Natural Resources, as a potential option.

In December the government said that any exporter out of compliance would be subject to daily fines.

Last week, however, it reversed its decision and ordered Drummond’s port to be shut down – much to the surprise of the European coal market, which had been anticipating the former scenario.

Should the mines be forced to idle loading long-term with no other alternatives, the export market of the country could be significantly slashed.

However, Acosta seemed to indicate to Reuters that officials might have a way to force compliant facilities like Prodeco to carry the coal of its rivals.

“We are seeing what capacity Puerto Nuevo has and the port of Santa Marta,” Acosta said.

“Private companies cannot shut their conveyor belts off and prevent access to the ports.”

Drummond is expected to have its new system completed by March.

In a separate Reuters interview on Friday CNR said it had not yet started construction and a 16-18 month construction period might not commence for a few weeks.

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