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Bombs and strike threats hit Colombian coal sector

Tuesday, July 17, 2012


Colombia's thermal coal industry is suffering a spate of bomb attacks and strike threats which may put at risk more than half of shipments from the world's fourth-largest exporter of the material.

Any stoppage of Colombia's output, however, would have to be prolonged to lift prices because both the Atlantic and Pacific markets are over-supplied despite a strong coal burn across much of Europe and steady imports into India and China.

A possible strike by workers at Fenoco railway - which carries high-grade coal to Atlantic ports from mines run by Drummond, Glencore's Prodeco unit and Goldman Sachs' Colombian Natural Resources - could cut exports by about 50 percent.

Source: Reuters