By Diana Delgado

October 22, 2020 - The suspension of operations at Colombian miners Prodeco and Colombian Natural Resources (CNR) cut coal railings on the Fenoco line to a multi-year low in September, as the producers ceased rail transit at the end of April and in mid-August, respectively.

Fenoco railings fell by 2.3mn t on the year and by 413,600t on the month to 2.1mn t in September, according to figures from infrastructure agency ANI. This was the second-lowest level since Argus began tracking Fenoco railings in 2017.

Fenoco transported 7.32mn t during the third quarter, down from 13mn t in the same quarter last year and from 7.4mn t during the second quarter. This brought total Fenoco railings for January-September to 27.9mn t, down by 25.4pc over the same period last year.

If the railroad maintains the 3.1mn t/month pace it set in January-September, Fenoco's coal shipments will total 37.2mn t this year and fall significantly short of ANI's 48.5mn t target.

In addition to the halt of Prodeco railings, Fenoco shipments were also pressured by the absence of transportation from CNR, the local unit of US-based Murray Energy, which halted railings on August 18.

One Fenoco worker said the drop-off in CNR volumes was the result of weaker prices, while railway blockades earlier in the year have also hampered coal transit. Fenoco confirmed 63 blockades in January-May, which is almost as many as the 65 recorded in the whole of 2019.

But fellow Cesar miner Drummond, Colombia's largest producer, said its coal railings were continuing as normal at up to 90,000 t/day.

Prodeco

Glencore's Prodeco unit remains idle as the company appeals a government decision that rejected the miner's request to remain off line because of poor economic conditions.

Mining regulator ANM's director, Juan Miguel Duran Prieto, said the government has until November 1 to consider Prodeco's appeal and that the ANM must decide whether to uphold the ruling or allow the miner to remain shut.