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Kamis, 09 April 2009

GlobalCoal Coal trucked to port during Colombian rail strike

BOGOTA, April 6 (Reuters) - Coal produced in Colombian mines owned by Swiss-based Xstrata (XTA.L) is being trucked to port during a train workers' strike that has shut down the local railway, the company said on Monday.

Last month, Xstrata bought the Colombian mines of privately owned Glencore, which is also based in Switzerland. The mining operations are run under the name Prodeco.

"We are moving Prodeco coal to port by road," Xstrata spokeswoman Claire Divver told Reuters. "We have not quantified the impact that this will have on exports."

Coal from Colombian mines owned by U.S.-based Drummond has also been affected by the railway work stoppage.

Some 600 employees of the Fenoco transportation firm are striking to demand recognition of their labor union. The protest has stopped 130,000 tonnes of coal per day from being transported by rail to Caribbean ports from northern Colombian mines, union officials say.

Colombia's labor ministry has called for mediation of the dispute, Divver said. A union representative said the workers had not been informed of any government call for mediation.

Xstrata expects to produce 11 million tonnes of coal from its Prodeco operations this year while Drummond sees output of 27 million.

source: Reuters 07 April 09

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