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Colombian coal production to grow to 2020

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World Coal,

Coal will drive growth in Colombia’s mining sector, according to a new report from BMI Research, with coal production growing from 87.2 million t in 2016 to 105 million t by 2020.

The country will also remain a key thermal coal exporter on the back of its large reserves and low operations costs, despite the weak coal environment.

BMI Research expects coal exports to climb as key producers ramp up production with the Netherlands, Turkey and the US the key imports of Colombian coal. In 2015, Colombia’s coal exports to Turkey and the Netherlands increased by 24% and 11% respectively.

The country’s coal production will remain dominated by three major coal companies: Cerrejón, Prodeco and Drummond. Together these accounted for 92% of the country’s output in 2015.

Growth in production will be driven by Murray Energy, however, which bought Colombia National Resources in 2Q15. The acquisition included the El Hatillo and La Francia mines, as well as three undeveloped mines and over 185 million t of coal reserves.

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