October 07, 2008

Venezuela coalminer Carbones del Guasare declares force majeure

Reuters reported that Venezuela's biggest coal producer Carbones del Guasare has declared a force majeure warning of an interruption in its agreed supplies to buyers due to a transport strike.

According to El Universal newspaper "As a result of circumstances out of our control, related to the blockade and the transport stoppage our president has declared operations suspended as part of a force majeure.” The newspaper also added that striking truck drivers, who seek higher pay, had decided to return to work but it remained unclear if production had resumed.

Carbones del in the western state of Zulia is controlled by the state company Carbozulia and has as minority owners the US company Peabody Energy and Anglo American. It operates the Paso Diablo mine. Carbones del Guasare said that it produces 6.8 million tonnes of coal per year for electricity and steel plants across the world.