Cerrejon resumes coal loadings, new blockade arises

Colombian mining firm Cerrejon resumed loadings at its Puerto Bolivar port on 31 May following a 24-day railway blockade, sources said. But disgruntled workers have created a new blockade on the line, casting fresh uncertainty over the short-term supply outlook in the Atlantic.

A group of Cerrejon's former workers began blocking the railway on 5 May, preventing the railway from transporting up to 148,500 t/d to Puerto Bolivar. The blockade was lifted on 29 May, allowing Cerrejon to resume coal loadings on 31 May, according to one Puerto Bolivar worker.

Cerrejon loaded 164,320t aboard the Zhong May bulk carrier on 31 May and the vessel departed on 2 June bound for Icdas in Turkey. This was the first departure since 14 May, according to vessel tracker Fleetmon.

Two other vessels are now berthed at Puerto Bolivar — the 60,500t Nord Bosporus, potentially bound for Chile, and the 180,000t Maran Vigour, which will head to Iskenderun in Turkey.

Six vessels are anchored outside Puerto Bolivar waiting to load coal, according to a shipping agency and a Puerto Bolivar worker.

But the resumption of exports may be short-lived, as Cerrejon confirmed to Argus that a new blockade is now disrupting railings to the port. One worker at the port said there was around 105,000t of coal on stock at Puerto Bolivar.

A spokesperson for Cerrejon said there was a risk the firm would declare another force majeure if the railway remains blocked, potentially costing the country and Guajira province close to 4bn pesos ($1.1mn) per day.

Cerrejon's former workers blocking the line claim the company, the government and the ombudsman's office did not fulfil their demands. The workers said their proposals had been ignored and that they intend to block the line until Cerrejon complies.

Cerrejon, which is jointly owned by global mining firms BHP, Anglo American and Glencore, began cutting jobs in February as part of a cost restructuring exercise to remain viable in the face of weaker seaborne demand and coal prices. The company said its finances were affected by the strain of Covid-19 and a three-month strike led by its biggest union Sintracarbon in September-November 2020.

By Diana Delgado