More low-cost Colombian coal boon to buyers, could fry high-cost projects

摘要

Drummond Coal is set to receive its environmental license for the development of the El Descanso mine in Colombia, unlocking billions of tons of reserves and potentially increasing its total production by about 16 million metric tonnes annually within four to five years. Drummond should produce 24.8 million tonnes this year. Further, the Cerrejon mine - jointly owned by Anglo American, BHP Billiton and Xstrata. marketed by CMC - will add 10.5 million tonnes of annual production, or thereabouts, within four to five years. Cerrejon is likely to produce 31.5 million tonnes of coal this year.