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.[1] 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.[2][2]

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.[3]

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.[4] 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.[2]

The other major mining company is Drummond Ltd., which produced 22 million tonnes from its La Loma mine in Cesar Department.[2]

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.[2]

Colombian Exports to Salem Harbor Station

In 2008, the Salem Harbor Station in Massachusetts burned 287,610 tons of coal from Colombia. [5]

The Colombian coal comes from el Cerrejon and la Loma mines. El Cerrejon is the largest open-pit coal mine in the world.[6] The mine began a joint venture between Exxon and the Colombian government in 1982 but now is a joint venture of Anglo American (33%), Glencore International (33%) and BHP Billiton (33%).[6] 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. [2] Coal imported from Cerrejon to the U.S. is sent to five ports, which are located in Mobile, AL, Jacksonville, FL, Baltimore, MD, Salem, MA, and Somerset, MA. Each of these ports serves a major power station.[6] In Salem, MA the destination is the Salem Harbor Station, and in Somerset, Dominion's Brayton Point Station.

La Loma mine opened in 1985 and is privately-owned by Drummond Coal.[6] Aside from Salem Harbor, coal imported to the U.S. from la Loma mine mainly goes to the Brayton Point station (Somerset, MA) and a plant in Mobile, AL.[6] Plants in Newburgh, NY, Savannah, GA, and Tampa, FL also receive coal from la Loma.[6] Nova Scotia and New Brunswick also imports large amounts of la Loma's coal.[6]

Colombian Coal and Human Rights Violations

Colombia's coal mines, like many industries in the country, are filled with stories of displacement and terror. A number of entire communities in the coalfields have been displaced, including Tabaco, a 700-person Afro-Colombian village that was razed in 2001.[7] People living near the coalfields have faced malnutrition, diseases such as ringworm, and restricted access to land since the large mines opened up.[7]

The Drummond Company (operator of la Loma mine) has been the subject of numerous lawsuits regarding the murders of 70 union miners and railroad workers, collectively.[8][9][10] The murdered Colombians were killed by the notorious paramilitary group, United Self Defense Forces of Colombia (AUC), which had been hired by Drummond to act as security.[9] In addition to those killed, a lawsuit against Drummond describes "how hundreds of men, women, and children were terrorized in their homes, on their way to and from work… innocent people killed in or near their homes or kidnapped to never to return home, their spouses and children being beaten and tied up, and people being pulled off buses and summarily executed on the spot."[9]

Mine Accidents

In October 1997, sixteen miners were buried after an explosion at El Diviso mine in Cucuta.[11] On April 27, 2001, fifteen miners were killed by an explosion at the Cana Brava mine in the Santander province.[11]

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."[2]

Coal Exports

In 2008, Europe imported 40.9 percent of coal from the Cerrejon mine (about 12.8 tons).[4] Twenty percent of Cerrejon's coal went to Central and South America (about 6.3 tons), while another 26.7 percent went to North America (about 8.4 tons).[4] The remaining 12.2% went to other destinations (about 3.8 tons).[4]

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.[12]

Power Stations

Coal-fired power stations financed by international public investment institutions

Coal-fired power stations financed by international public investment institutions include:[13]

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

Sources

  1. ↑ World Coal Institute, "Coal Facts 2007", World Coal Institute website, accessed June 2008.
  2. ↑ Jump up to: 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Ivette E. Torres, "The Mineral Industry of Colombia", U.S. Geological Survey, U.S. Department of the Interior, December 2007.
  3. ↑ ABARE, "Energy:Thermal coal", Australian Commodities, June quarter 2006.
  4. ↑ Jump up to: 4.0 4.1 4.2 4.3 "Export results", Cerrejon Coal website, accessed July 23, 2009. Cite error: Invalid <ref> tag; name "cercoa" defined multiple times with different content
  5. ↑ "New England power plants that use coal and where the coal comes from", "Appalachian Voices", accessed March 30, 2009.
  6. ↑ Jump up to: 6.0 6.1 6.2 6.3 6.4 6.5 6.6 Aviva Chomsky, "Linked Labor Histories: New England, Colombia, and the making of a global working class", Duke University Press, 2008.
  7. ↑ Jump up to: 7.0 7.1 Aviva Chomsky, "The dirty story behind local energy", "The Boston Phoenix", October 1, 2007.
  8. ↑ International Rights Advocates, "Juan Aquas Romero, et al. v. Drummond Company Inc., et al.", Plaintiff's Opening Brief, December 11, 2007.
  9. ↑ Jump up to: 9.0 9.1 9.2 "Federal lawsuit alleges U.S. mining company Drummond paid millions to Colombian paramilitary terrorists who killed 67; including "execution" of union leaders", "Reuters", May 28, 2009.
  10. ↑ "Children of slain Colombian coal miners sue Drummond Co. in Birmingham federal court", "Birmingham News", March 20, 2009.
  11. ↑ Jump up to: 11.0 11.1 David Bacon, "The Colombian Connection", "In These Times", July 23, 2001.
  12. ↑ Mark Szakonyi, "Keystone preparing to import South American coal to Jacksonville," Jacksonville Business Journal, January 23, 2009.
  13. ↑ "Coal Fired Plants Financed by International Public Investment Institutions since 1994", Appendix A in Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009.

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