<article><p class="lead">The suspension of operations at Colombian miners Prodeco and CNR cut coal railings on the Fenoco railway line in October compared with a year earlier, although throughput recovered slightly on the month.</p><p>Fenoco hauled 2.36mn t of thermal coal in October, down by 1.62mn t on the year but 293,371t higher than in September, according to figures from infrastructure agency ANI (<i>see chart</i>). October's shipments were the third lowest in 2020.</p><p>The drop primarily reflects reduced volumes from Glencore subsidiary Prodeco, which stopped transporting coal on 24 April after previously ramping up shipments to reduce mine stockpiles and replenish inventories at its port. </p><p>Prodeco's mining operations were suspended at the end of March because of Covid-19 restrictions, and the producer has since remained off line because of poor economic conditions for seaborne exports.</p><p>Mining regulator ANM rejected Prodeco's request to stay off line for an extended period, but operations remain suspended while the firm appeals the decision. ANM has said it will take a decision on the appeal by late November, but a Prodeco worker from the Sintramienergetica union said they expect an update next month.</p><p>Prodeco workers and residents of Cesar province affected by the suspension marched on 6 November to demand the resumption of mining operations. </p><p>Fenoco shipments were also pressured by an absence of transportation from CNR, which suspended production on 31 July because of disruption caused by Covid-19 and tight margins for exports to the seaborne market. </p><p>CNR transported coal along the Fenoco railway to Glencore's Caribbean port of Puerto Nuevo until 18 August, in order to shift coal stockpiled at the mines, a Fenoco worker said. Prodeco also bought from CNR to fulfil export contracts, but these purchases ended when CNR halted production, a CNR worker said.</p><p>Prodeco's stocks at Puerto Nuevo are around 300,000t, a government source said, down from more than 2.2mn t in early April.</p><p>But Drummond, which also uses Fenoco and is Colombia's largest producer, said its coal railing activity is continuing as normal. This has put a floor under the decline in Fenoco's coal shipments as Drummond is transporting up to 90,000 t/day along the railway.</p><p>Fenoco transported 30.26mn t of coal in January-October, down by 11.16mn t from the same period last year when it hauled 41.43mn t. Assuming shipments continue at a 3.02mn t/month rate, Fenoco would transport 36.3mn t in 2020 and fall short of ANI's target of 48.5mn t. </p><p class="bylines">By Diana Delgado</p><p><div class="picture"><div><span class="pic_title">Fenoco coal railings</span> <span class="units">mn t</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2020/11/17/fenoco17112020052852.jpg"></div></p></article>
