Colombia's Q3 coal production falls 9% on-year to 20.8 mil mt, will miss year-end target
London (Platts)--20Nov2012/1036 am EST/1536 GMT
Colombian coal production in the third quarter fell 9.2% to 20.776
million mt compared to the same quarter last year, which means it will be
unable to meet its year-end production target, according to the country's
mining information service SIMCO.
Coal production fell 11.23% compared to the previous quarter, the data
In a statement late Monday, SIMCO said that if Q3 coal production was
matched in Q4, then the country would be able to reach 90 million mt by the
end of the year while if it reaches the average production from the first two
quarters of the year, total 2012 production could reach 91 million mt.
Both of these estimates are still under the revised target given by the
country's vice minister for mining Henry Medina in October of 93 million mt,
a figure which was already downgraded from the 97 million mt figure set by
the mining and energy ministry earlier in the year.
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Colombia was affected by a 23-day workers' strike at the Fenoco rail
line in the third quarter, which stopped coal transportation from mines owned
by producers Drummond, Glencore unit Prodeco and Goldman Sachs affiliate
Colombian Natural resources to export terminals in northern Colombia.
The walkout ended after Fenoco workers voted on August 13 to resume
operations and a Colombian court declared the strike illegal on August 14,
allowing coal transport to resume.
It was also hindered by a three-month miners strike at Glencore's La
Jagua mine which finished on October 25.
THERMAL COAL ACCOUNTS FOR 93% OF Q3 PRODUCTION
Thermal coal production accounted for 93.62% of the total coal produced
in Colombia, or 19.45 million mt, in Q3 2012, a 12.74% decrease from the
previous quarter, SIMCO data showed.
Most of the coal mined in the third quarter of the year came from the
Cesar region, which produced 50.46% in Q3, followed by 42.06% for La Guajira.
This compares to the distribution in Q2 2012, when Cesar mined 51.04% and La
Thermal coal exports totaled 15.205 million mt, down 30.7% on-year and
23.24% on-quarter. In Q3 2012, thermal coal was exported mainly to the
Netherlands, followed by Israel, Turkey, the Falkland Islands and Spain.
Metallurgical coal production totaled 1.325 million mt in Q3, making up
6.38% of the total national production, and increasing 19.3% from the
Exports for metallurgical coal fell by 39.54% on-year to 276,878 mt, and
were mostly sent to Brazil, Belgium and India.
--Jaime Concha, email@example.com
--Edited by Maurice Geller, firstname.lastname@example.org