Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Colombian coal output fell 2% in 2019

Published 05/03/2020, 06:04 am
Updated 05/03/2020, 06:07 am
© Reuters.  Colombian coal output fell 2% in 2019
BHP
-
AAL
-
GLEN
-

BOGOTA, March 4 (Reuters) - Coal production in Colombia, the fifth-largest coal exporter in the world, fell 2% to 82.2 million tonnes in 2019 after output at one of the principle mines declined and operations were interrupted by droughts, the government said Wednesday.

In 2018, the South American country recorded coal production of more than 84.2 million tonnes.

A judicial ruling prevented the extension of mining operations at Cerrejon, a coal mine in the La Guajira province which is jointly owned by BHP Group BHP.AX , Anglo American AAL.L and Glencore GLEN.L .

"The coal industry has been presented with an important cross roads. In the case of thermal coal, the average price went from $82.50 per tonne in 2018 to $51.4 per tonne in 2019," said Silvana Habib, president of the National Mining Agency.

"Both the effects of climate and restrictions due to judicial rulings had impacts."

Open-pit coal mines are required to reduce production in high temperatures to reduce pollution caused by dust.

As well as the Cerrejon mine, the Colombian coal industry is dominated by Drummond DRMND.UL and Prodeco, which is a unit of Glencore.

In its 2019 results, Glencore recorded impairments of $514 million and $435 million related to Prodeco and Cerrejon respectively. Anglo American recorded an impairment on Cerrejon operations of $334 million.

Gold production in Colombia in 2019 hit 36.6 tonnes, up 3% from output of 35.5 tonnes in 2018.

The government predicts a 12% rise in gold production in 2020, due to the start of operations at the Buritica project in Antioquia province.

Nickel production closed at 89.4 million pounds, down 6% on 2018 levels, when nickel output was 94.9 million pounds.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.