Colombia coal miners Drummond company's workers are operating again by ending 53-days strike and enabling coal exports to European power producers to restart.
Workers of Drummond Coal, a US coal miner with mines in Colombia, Saturday started to return to work after a 53-day-long strike. Operation of Mina Pribbenow and El Descanso (25-27 MnT/year of coal in total) mines and Drummond coal terminal (30 MnT/year) will be fully restored this week. A shortage in coal deliveries is estimated to exceed 4 MnT. Shipments to some consumers are delayed, with deliveries partially postponed from September to October 2013.
The Sintramienergetica union, which represents a majority of Drummond's permanent employees in Colombia, rejected the company's August offer of a 5% pay increase in the first year of a new agreement. The union is demanding a fixed monthly salary rather than the current hourly pay, plus the relocation of port workers who stand to lose their jobs with the introduction of direct loading next year.
Drummond Company is Colombia's second largest coal miner, producing 26 MnT in 2012, about one third of the country's total. Coal is Colombia's main export after oil, with the government losing an estimated 1.6 billion pesos (USD 850,000) in royalties for each day of the strike, according to the national mining agency.
Drummond Coal mined 26 MnT of thermal coal in 2012. The 2013 target was set at 32 MnT, but it will probably be jeopardized due to the strike.
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