Coal news and updates

Glencore Has Colombia Night Coal Rail Ban Temporarily Lifted

Miners in Colombia including Glencore Plc and Drummond Co. may soon be able to renew coal transport at night on the Andean nation’s main railway, eliminating a bottleneck that has cut exports.

A court in northern Colombia authorized the lifting of transportation restrictions between 10.30 p.m. and 4.30 a.m. on the Fenoco coal railway for a fifteen day period starting Oct. 1, according to a court document sent by e-mail. The lifting of the ban will allow inspectors to gauge whether noise-reduction measures have been successful, the court said.

Colombia banned night transport along the railway in February following protests by local residents. That cut capacity by 25 percent, equivalent to about 15 million tons of coal on an annualized basis, Fenoco President Patrick Ross said in February. The railway connects coal mines in northern Colombia with Caribbean ports.

Colombia exports coal to European power producers including Electricite de France SA and Germany’s EON SE. A regional environmental authority has until Oct. 30 to file a report on the noise-reduction measures, according to the document.  

“Once the reports are submitted we will await their decision as to whether it can be lifted beyond,” Fenoco’s Ross said in e-mailed response to questions Tuesday.

Glencore didn’t immediately reply to an e-mail seeking comment sent outside normal business hours. A Drummond press official declined to comment when contacted by phone. Coal is Colombia’s biggest export after oil.

Source: Bloomberg