Colombian leading miner, Drummond will face complete closure of Coal mining and shipping activities during this week as Government restricts Coal loading through barges.

Drummond, a second largest Alabama-based Coal miner of Colombia will have to shut its Columbia Coal mines in a week as its port operations are suspended. The miner has disrespected the Government notice for using mechanized way of loading Coal and stop using barges to load Coal from 1 Jan, 2014.

Drummond’s Coal exports will be stopped till completion of direct loading facility installation at Port of Cienaga, which is expected to be completed in March 2014. To continue its exports, company has no alternate ports to use and the current port storage areas are already filled, therefore company has to halt its mining operations.

“Its Coal exports suspension may cost Colombia COP 11.5 billion daily in lost port tariffs, taxes and royalties until Drummond completes the loading facility”, said Amilkar Acosta, Minister of Energy and Mines.

Drummond has been fined of USD 3.6 billion and its mining license has been suspended temporarily by the Government last year. This action has been taken by Government for dumping Coal in sea near port by its barge workers to avoid their barge to sink during rough sea. Company has threatened its 4,160 workers to suspend, if its port operations are halted and so it faced 57 day long workers strike last year and was beyond its control.

Colombia is the largest Coal producer in Latin America with output of 89.2MnT in 2012. Drummond is Colombia’s second largest Coal producer and produces around 75,000 MT Coal per day. Colombia’s biggest producer is Cerrejón a JV between Anglo American, BHP Billiton and Glencore Xstrata.