Colombian residents to demand Prodeco restart

Workers for Colombian coal producer Prodeco and residents of the Cesar province — which is economically dependent on the mining company — will demand that the firm resumes operation during a march scheduled for 6 November.

Prodeco's unions, Sintramienergetica and Sintracarbon, are organising the marches to demand "the economic reactivation of the region", Luis Fernando Ramirez, Sintramienergetica president for La Jagua, told Argus.

Prodeco — which is owned by Switzerland-based commodity producer Glencore — has been idle since April and remains off line while the company appeals a government decision that rejected its request to remain off line because of poor economic conditions.

Juan Miguel Duran Prieto, director of the ANM mining regulator, said the government has until 1 November to decide whether to uphold its ruling or allow Prodeco to remain shut. But the ANM told Argus that its final decision will be published no later than 19 November.

Bogota hopes to make the mining sector a cornerstone of the country's economic recovery from Covid-19, but the Prodeco suspension has negatively affected workers and the regional economy.

Direct workers for the firm are receiving only 70pc of their usual income, as only their basic salaries are still being paid, according to Ramirez. Some workers have sought voluntary redundancy in order to receive severance payments.

La Jagua is, according to the town's mayor, Ovelio Jimenez Machado, one of the regions worst affected by the suspension. In addition to lower incomes for direct workers, many contractors have lost their jobs and some administrative posts have been eliminated. About 120 jobs at Puerto Nuevo were cut in June.

Machado has demanded that Prodeco restart operations but was told by the firm that even a partial restart was not possible because of high operational costs "which in the current situation of the coal market, would have a negative impact on the financial viability of the project", according to a letter seen by Argus.

Jose Luis Uron, director of the chamber of commerce of Valledupar, said 4,000 commercial enterprises are located within the Cesar mining corridor, including hotels and shops, which have also been affected by Prodeco's suspension.

By Diana Delgado