Bloomberg quoted a union leader said Drummond Co has slowed production at its coal mines in Colombia after a strike halted a railway used to carry the fuel to port.

Mr Ever Causado a union leader at a workers’ group known as Sintramienergetica said closely held Drummond based in Birmingham, Alabama has reduced workers’ shifts to 8 hours from 12 hours at its El Descanso and Pribbenow mines in northern Colombia.

Mr Sergio Becerra union leader said railway workers and a separate union at a mine owned by Glencore International Plc walked off the job last month to demand higher wages as production climbs in Colombia, South America largest coal supplier. Workers at the railway called Ferrocarriles del Norte de Colombia SA will meet for negotiations today with management and government officials. The strike began July 23.

He said that workers at Glencore Prodeco Group have no negotiations scheduled at the La Jagua coal mine in northern Colombia. A walkout at the mine began on July 19. La Jagua and the nearby Calenturitas mine produce 14.5 million tonnes of coal annually.

The trains carry Drummond coal to a port on the Caribbean coast of northern Colombia where the company produced about 25 million tons of the fuel last year.

Ms Serene Lim an analyst at Standard Chartered Plc in Singapore said if prolonged, the strike may be a positive for thermal coal prices. The railway also carries coal from mines owned by units of Glencore and Goldman Sachs Group Inc which along with Drummond hold stakes in the railway company.

Source - Bloomberg

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