BOGATA, Colombia, Aug. 13, 2012 /PRNewswire/ -- Starting on July 23, 2012 Fenoco's employees announced a work stoppage. Drummond Ltd. transports 100% of its coal shipments from mine to port along the railway operated by Fenoco. With the railway out of operation, coal exports have ceased and inventory at the mine loadout facility has reached full capacity. As such, Drummond Ltd., for an indefinite period of time, will be significantly reducing its operations in Colombia.
The situation has prevented the transportation of approximately 80,000 to 85,000 tons per day of Drummond Ltd.'s coal, along with significant tonnages of the other coal producers in Cesar, adversely impacting the companies' operating performance and resulting in a loss of revenue for the Colombian government. This circumstance could affect more than 4,000 direct jobs and 4,000 indirect jobs at Drummond Ltd. alone.
Drummond Ltd. hopes that Fenoco and Sintraime can reach an agreement soon, and thereby avert a crisis that would harm not only coal mining, transportation, and export, but also the departments and municipalities in which coal mines and ports are located, as well as the mining companies' suppliers and contractors.
Drummond reiterates its commitment to the country's economic development and to the well-being of the workers and communities located in the area of influence of its operations. We hope the situation will be resolved as soon as possible in order to recommence coal production and shipments, which will bring peace of mind to employees, customers, suppliers, and the many others impacted by this unfortunate situation.
SOURCE Drummond Limited