Cerrejón, one of Colombia’s largest coal producers, said on Friday that its export figure for the first part of 2020 is the lowest in 18 years due to declining demand for coal, court rulings and the crisis of the COVID-19.
The mine, in the deficient desert province of La Guajira, is similarly owned by BHP Group, Anglo American and Glencore.
Exports were 9.5 million tonnes in the first part of this year, the company said, 3.8 million less than at the same time last year.
“This result is the result of relief in the call for coal, the lack of access to more successful reserves such as La Puente by judicial decisions and the crisis created by COVID-19, which has led us to an unprecedented situation”, Cerrejón.said in a statement.
Coal costs fell by 26% in the first part of the year compared to the first six months of 2019, he added.
The fall in value was reflected in the company’s results, cerrejón recorded a loss of 368 billion pesos ($97.7 million).
The figures arise in the midst of a contractual dispute between Cerrejón and its union, Sintracarbon.
Union members are voting in favor of the strike lately. The result is expected on Monday.
“Despite the economic situation, the company has made a very smart offer that keeps the economic benefits fair that it offers to employees and that are impressive for those that were obtained through many employees in La Guajira,” said Cerrejón President Claudia Bejarano.
Benefits include an 89% subsidy for fitness insurance, tuition assistance for workers’ children, low-interest housing loans, and a worker-based 5.5 million peso signing bond.