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Colombian coal output decreased by 2% in 2019

According to the Colombian Ministry of Mines and Energy, coal production in the country decreased by 2% to 82.4 Mt in 2019. This decline in coal production was mainly caused by a drop in output at one of the main mines, as a judicial ruling prevented mining operations at the Cerrejon mine from being extended. In addition, the drought and high temperatures forced open-pit mines to cut production and to interrupt mining activity to reduce dust pollution. The average price of thermal coal decreased from US$82.5/t in 2018 to US$51.4/t in 2019.

The coal sector is dominated by two companies which account for two-thirds of the national production: Cerrejon (BHP Billiton, Anglo-American and Glencore 1/3 each) and Drummond (United States). In January 2019, the government extended Drummond's license for the La Loma coal mine (Cesar province) for another 20 years. La Loma represents 30% of the company's operation. In its 2019 results, Glencore announced that its coal mining business in Colombia recorded an impairment of almost US$1bn. The Switzerland-based company plans to stop activity in the country by 2035.

Colombia's coal production has more than doubled since 2000, from 38 Mt in 2000 to 84 Mt in 2018. Coal exports account for more than 90% of production with most of those exports destined for European markets. Colombia is the world’s fifth-largest coal exporter (2018).