Colombia Cerrejon coal sales revenue to fall in 2009
Monday, 22 Jun 2009
Dow Jones reported that Cerrejon LLC, Colombia's largest coal producer, expects its sales of coal will fall to close to USD 2 billion in 2009 from USD 2.5 billion in 2008 as coal prices contracted.
Mr Leon Teicher CEO of Cerrejon said that the company will produce 32 million tonnes of coal in 2009 up from 31.5 million tonnes in 2008.
Mr Teicher said that "The demand for coal in the world is weak. Fortunately we had no problem to find buyers for our coal."
He said that the company has submitted to his shareholders an expansion plan to boost annual output to 40 million tonnes and the approval of that plan depend on market conditions.
Cerrejon's entire production is exported, mainly to Europe, the US and South America. The open-pit mine located in the Guajira province in Colombia's northeastern tip is the country's largest.
Coal is Colombia's second-largest legal export behind oil and processed products. Coal sales abroad brought in USD 5.04 billion in 2008, up from USD 3.49 billion a year earlier.
Colombia is Latin America's largest coal producer. Coal producers exported 63.5 million tonnes in 2008.
