Prodeco seeks longer suspension of operation at two coal mines
2020-07-08 08:25:55 [Print]
Colombian coal miner Prodeco is seeking government permission to prolong the suspension of operations at its two mines, according to a letter to workers sent by company president Xavier Wagner.
Prodeco, owned by Glencore, halted operations because of Covid-19 on 23 March and is the only major Colombian miner still on care and maintenance. But the letter to employees said that the rapid decline in global coal prices, unrest in local communities as well as continuing uncertainty surrounding the pandemic have prompted the miner to seek government permission for a longer temporary halt to operations.
The letter said the mining suspension will protect the value of the firm's assets, "preserving the option to implement revised mining plans once it receives required approvals and once market conditions improve".
The firm will continue operations at its Puerto Nuevo coal port, the letter said. Puerto Nuevo has around 400,000t of coal on stock and has been loading six vessels per month since May, according to one port worker. This is down from around 20 vessels per month before the lockdown.
Prodeco, owned by Glencore, halted operations because of Covid-19 on 23 March and is the only major Colombian miner still on care and maintenance. But the letter to employees said that the rapid decline in global coal prices, unrest in local communities as well as continuing uncertainty surrounding the pandemic have prompted the miner to seek government permission for a longer temporary halt to operations.
The letter said the mining suspension will protect the value of the firm's assets, "preserving the option to implement revised mining plans once it receives required approvals and once market conditions improve".
The firm will continue operations at its Puerto Nuevo coal port, the letter said. Puerto Nuevo has around 400,000t of coal on stock and has been loading six vessels per month since May, according to one port worker. This is down from around 20 vessels per month before the lockdown.
