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 showed.

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 Guajira 40.10%.

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 previous quarter.

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, jaime_concha@platts.com
--Edited by Maurice Geller, maurice_geller@platts.com

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