US coal miner Drummond has declared force majeure on some cargoes from Colombian mining operations that have been hit by a strike since July 23, two buyers of the company's coal said on Thursday.
"Drummond declared force majeure only for cargoes that were in the vicinity of the loading port, which will impact a limited number of buyers in the near term," a trader for one of the buyers said, quoting correspondence sent by the second-largest coal producer in Colombia.
Negotiations between Drummond and the Sintramienergetica union, over pay and proposed job cuts, have been ongoing for several weeks. The strike began after the two parties failed to reach an agreement.
The Sintramienergetica union represents roughly half of Drummond’s 10,000 strong Colombian workforce. The US coal miner has two coal mines and a port in the Andean country.
European physical coal prices rose around US$ 2, as news of Drummond’s force majeure was announced.
Force majeure allows a company to suspend contractual obligations in the face of unexpected events, such as strikes and natural disasters.
Adapted from press release by Samuel Dodson
Read the article online at: https://www.worldcoal.com/coal/26072013/drummond_declares_force_majeure_283/