Drummond says sustaining coal exports despite railway ban
By Peter Murphy
BOGOTA, March 17 (Reuters) - Colombia's second-biggest coal miner, U.S.-headquartered Drummond, is sustaining regular exports despite new restrictions on using the Andean country's main coal railway and has ample stocks for now, a company executive said.
The Constitutional Court imposed a six-hour overnight ban which took effect in mid-February on use of the Fenoco coal railway operated by Drummond and two rival miners, cutting mine-to-port transport by 25 percent, Drummond Vice President for Communication, Pablo Urrutia, said.
"Before the restriction we were managing 15 to 16 trains a day and right now we are managing 12 to 13. It clearly has an impact," he said.
"Right now we can manage it. So far because we have stock in place we are not having any problems in terms of meeting obligations."
Colombia is the world's fourth-biggest coal exporter, shipping mainly to Europe after rising gas production in the United States crimped demand in that once-large market. Coal is Colombia's most important export after crude oil.
European API2 2015 coal futures remain near a nine-year low of $55.60 per tonne hit on January 26. Colombia's coal sector may prove one of the most resilient amid low prices given low labor costs and use of technology.
Fenoco has filed a petition with the court to lift the restrictions and says it has undertaken steps to address the grievances of rural residents whose complaint about noise was behind the overnight ban.
The family-owned company is working to expand its stock holding capacity at its port on the Caribbean coast to 1.5 million tonnes, up from 1 million tonnes now. Continuación...