Reuters quoted industry sources said Colombia 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 fourth largest exporter of the material.

Any stoppage of Colombia output and 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 Prodeco unit and Goldman Sachs' Colombian Natural Resources could cut exports by about 50%. There is also a chance of a walkout at Prodeco Carbones de La Jagua project over pay and working conditions after laborers voted on July 7 to authorize a strike. Under Colombian law, they have until Thursday night to strike or they must vote again.

The sources said Fenoco laborers are paid less than workers at the companies' mines and could join miners at La Jagua in any walkout paralyzing some of Colombia major producers.

One veteran industry source said "Fenoco workers are taking advantage of the possible strike at La Jagua. If La Jagua goes on strike, it won't be that big a deal, but if Fenoco does, then that will be a problem."

Mr Peter Burrowes Fenoco President said the company was doing all that is possible to resolve the issue while the union said talks had broken down. The Fenoco workers have until Thursday July 26 to carry out the strike or must vote again.

The sources said walkouts at La Jagua and Fenoco would likely have to last several weeks to have an impact on prices.

Source - Reuters

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