Colombia and coal

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Colombia is the world's tenth largest producer of hard coals and the sixth largest exporter of coal. In 2006 it was estimated that Colombia would mine 64 million tonnes of thermal coal, of which approximately 60 million tonnes was for the international export trade. The U.S. Geological Survey states that Colombia is the largest coal producer in South America and has the largest reserves in the region. It also states that coal mining for export is booming in Colombia, with production having increased by 80% since 1999.

The majority of Colombia's coal exports are shipped to European markets due to shorter distances and lower freight costs compared to the rapidly growing Asian markets. Colombia is considered to be a low-cost producer with its coal highly sought after due to its low sulfur content.

Coal Mining Operations

Coal mining in Colombia is undertaken entirely by private sector mining companies. The largest coal mining operation is that of Carbones del Cerrejón LLC in the Department of la Guajira. The company -- which is a joint venture of Anglo American (33%), Glencore International (33%) and BHP Billiton (33%) -- produced 31.3 million tonnes in 2008. It operates the Cerrejon Centro mines, Cerrejon Sur mines, Cerrejon Zonoa Norte and Oreganal mines in the La Guajira Department. The U.S. Geological Survey reports that in 2005 59% of the company's exports went to Europe with a further 22% to North America.

The other major mining company is Drummond Ltd., which produced 22 million tonnes from its La Loma mine in Cesar Department.

Other coal mining projects includes the Calenturitas mine in Cesar Department by C.I. Prodeco S.A, which is entirely owned by Glencore International. In 2005 this 5 million tonnes. The next largest coal mine is a privately owned Paz del Rio mine in Boyaca Department which produced 600,000 tonnes.

Mine Accidents

In October 1997, sixteen miners were buried after an explosion at El Diviso mine in Cucuta. On April 27, 2001, fifteen miners were killed by an explosion at the Cana Brava mine in the Santander province.

Growth projects

In its review of mining in Colombia, the U.S. Geological Survey states that "based on information provided by the coal producers in Colombia, the Government expects the production of coal to increase to 124.9 mt in 2011 and to 134.2 mt in 2019; the largest increase would be in the Department of Cesar. The production from the Departments of Cesar and la Guajira is expected to continue to be exported in its entirety. The Government outlook for coal is somewhat higher than that of other analysts."

Expanding exports to the U.S.

A new coal terminal at the Port of Jacksonville, Florida is slated to open in 2011, and could open markets in the southeastern and midwestern U.S. to Colombian coal. Use of Keystone Coal Co.’s $20 million terminal is expected to create access to imported coal that is 10 to 20 percent cheaper than domestic coal. Because rates for rail transport of U.S. coal continue to increase, the cost of getting the Colombian product to buyers would be significantly less, possibly as little as $4.50 per metric ton, versus $40 per metric ton for domestic coal. Keystone owner Tom Scholl suggested that despite calls for more environmentally forms of energy, the lower cost of Colombian coal would ensure its continued use for electrical generation.

Citizen Groups

• Atlantic Regional Solidarity Network: The Atlantic Regional Solidarity Network (ARSN) was formed in 1981 with the objective of improving coordination of Atlantic Canadian work in solidarity with the people of Latin America and the Caribbean. ARSN has a "Mining the Connections" Campaign which focuses on the activities of the Canadian-based Glamis Gold's Guatemalan gold mines and the purchase of Colombian coal by Canadian companies.

• North Shore Colombia Solidarity Committee: The North Shore Colombia Solidarity Committee was formed by people from various North Shore communities in Massachusetts in response to the news that a portion of the coal for the Salem Harbor Station was coming from a mine in Colombia where human rights violations were being committed against the people in the villages surrounding the mine.

• Witness for Peace: Witness for Peace's mission is to support peace, justice and sustainable economies in the Americas by changing U.S. policies and corporate practices which contribute to poverty and oppression in Latin America and the Caribbean. Witness for Peace trips to Colombia have brought members of Kentuckians for the Commonwealth, people from Massachusetts (where Colombian coal is burned), and elsewhere to the Colombian coalfields.

Articles and Resources

Related SourceWatch articles

• Colombia
• Global use and production of coal
• Australia and coal
• Britain and coal
• China and coal
• Germany and coal
• Indonesia and coal
• Japan and coal
• New Zealand and coal
• South Africa and coal
• United States and coal
• Very low sulphur coal

External Articles

• International Energy Agency, "Coal in Colombia in 2005", International Energy Agency website, accessed June 2008.
• U.S. Geological Survey, "The Mineral Industry of Colombia", 1994-2005.
• Energy Information Administration, "Coal", Energy Information Administration website, accessed June 2008.

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