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Colombia raises coal production target for 2021

  • Market: Coal
  • 04/10/21

Colombian coal production is expected to rebound by 40pc-50pc in 2021 amid strong international prices and recovering demand in Asia, according to energy and mining minister Diego Mesa.

Colombian output could rise to 67.8mn-72.6mn t this year, from 48.4mn t in 2020, Mesa said. This would be higher than the 60mn t initially expected by the government and Colombian mining association ACM.

"In the case of coal, we are seeing increases in production close to 40pc during the first two quarters. We are also seeing an increase in the demand for coal in Asia, although we will not reach pre-pandemic levels," Mesa said.

Still, ACM said the projections are too optimistic and output is unlikely to surpass 67mn t, as the rampup of production at mines has been slower than the rise in coal prices.

Argus assessed NAR 6,000 kcal/kg coal at $60.25/t fob Puerto Bolivar at the end of last year, compared with a new record of $195/t on 1 October.

Mesa did not break out forecasts for thermal and coking coal and metallurgical coke production.

Coal producer Cerrejon is operating at full capacity regardless of global coal price increases, the firm's president Claudia Bejarano said. Cerrejon's annual exports could reach close to 24.3mn t based on January-August loadings. This would be up from 13.5mn t last year but down from 26.3mn t in 2019.

Drummond expects to produce 31.5mn-33mn t of coal in 2021, near levels achieved before the Covid-19 pandemic. The firm produced 19.7mn t in January-August.

Coal miner Colombian Natural Resources is gradually resuming production after being acquired by an investment firm. The company did not say how much it expects to produce this year, but has revealed a mining plan to produce 1.5mn-2mn t/year by 2022.

Commodities producer Glencore is handing back its titles to the Prodeco unit and it is unclear if or when a new owner will be found.

Booming metallurgic coke exports

Booming metallurgic coke exports to China and rising international demand for steel as economies recover from the pandemic have supported Colombia's metallurgic coke exports, which in turn are bolstering coking coal production.

Colombia, the world's third-largest metallurgical coke exporter, is on track to export around 3.8mn t of metallurgical coke, a record, which will require as much as 4.8mn t of coking coal production in 2021, according to a ministry of mines source.


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10/04/25

US inflation eased for 2nd month in March

US inflation eased for 2nd month in March

Houston, 10 April (Argus) — US inflation slowed more than forecast in March, pulled lower by falling gasoline prices and slowing shelter inflation, as the new US administration's tariff policies have prompted concerns of a global economic slowdown. The consumer price index (CPI) slowed to an annual rate of 2.4pc in March, down from 2.8pc in February and the lowest rate since November 2024, the Labor Department reported Thursday. Analysts surveyed by Trading Economics had forecast a 2.6pc rate for March. Core inflation, which strips out volatile food and energy, rose at a 2.8pc annual rate, down from a 3pc annual rate the prior month and the lowest since March 2021. The deceleration in inflation came a month after President Donald Trump began to levy tariffs on imports from China and on steel, aluminum and automobiles, starting in February. Several tariff deadlines were pushed back, including a three-month pause enacted this week on much steeper tariffs for most countries. The tariffs have prompted companies and consumers to pull back on investments and some purchases while shaking up financial markets, and heightening concerns of a global recession. The energy index fell by an annual 3.3pc in March following a 0.2pc annual decline in February. Gasoline fell by 9.8pc after a 3.1pc decline. Piped natural gas rose by 9.4pc. Food rose by an annual 3pc, accelerating from 2.6pc. Eggs surged by an annual 60.4pc, as avian flu has slashed supply. Shelter rose by an annual 4pc in March, slowing from 4.2pc in February and the smallest increase since November 2021. Services less energy services rose by 3.7pc, slowing from 4.1pc in February. New vehicles were unchanged after an annual 0.3pc drop in February. Transportation services, which includes what maintenance and repair, insurance and airfares, rose by an annual 3.1pc, slowing from 6pc in February. Car insurance was up by an annual 7.5pc and airline fares fell by 5.2pc. CPI fell by 0.1pc in March after a monthly 0.2pc gain in February. Core inflation rose by 0.1pc for the month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump coal plant bailout renews first term fight


09/04/25
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09/04/25

Trump coal plant bailout renews first term fight

Washington, 9 April (Argus) — President Donald Trump's effort to stop the retirement of coal-fired power plants is reminiscent of a 2017 attempt that faltered in the face of widespread industry opposition. Trump, in an executive order signed on Tuesday, directed the US Department of Energy (DOE) to tap into emergency powers to stop the retirement of coal-fired plants and other large plants it believes are critical to grid reliability. The order sets a 30-day deadline for DOE to decide which plants are critical based on a new methodology that will analyze if reserve margins, or the percent of unused capacity at peak demand, are at an "acceptable" level. The initiative shares similarities to Trump's unsuccessful effort in his first term to bail out coal and nuclear plants. In the 2017 effort, Trump backed a "grid resiliency" proposal to compensate power plants with 90 days of on-site fuel. But an unusual coalition of natural gas industry groups, manufacturers, renewable producers and environmentalists united against the idea, warning it would upend power markets and cost consumers billions of dollars each year. The US Federal Energy Regulatory Commission voted 5-0 to reject the proposal. It remains unclear if a similarly sized coalition will emerge to fight Trump's latest proposal, under which DOE would use emergency powers in section 202(c) of the Federal Power Act to keep some coal plants and other large power plants operating. Industry groups have largely been avoiding taking positions that could be seen as critical of Trump. Environmentalists say they strongly oppose keeping coal plants operating using emergency powers. Doing so would mean more air pollution and greenhouse gas emissions, they say, and higher costs for consumers. Environmental groups say they are hoping other industries affected by the potential bailout will eventually speak out against the initiative. "The silence from those who know better is deafening," Center for Biological Diversity climate law institute legal director Jason Rylander said. "I hope that we will start to see more resistance to these dangerous policies before significant damage is done." DOE said it was "already hard at work" to implement Trump's executive order, which was paired with other orders that were meant to support coal mining and coal production. US energy secretary Chris Wright said today that reviving coal will increase the reliability of the electrical grid and bring down electricity costs, but he has not shared further details on the 202(c) initiative. Trying to litigate the program could be "tricky", and section 202(c) orders have never successfully been challenged in court, in part because they are usually short-term orders, Harvard Law School Electricity Law Initiative director Ari Peskoe said. But opponents could challenge them by focusing on "numerous legal problems", he said, such as not allowing public comment or running afoul of a US Supreme Court precedent that prohibits agencies from attempting to decide "major questions" without clear congressional authorization. "Here DOE would use a little-used statute explicitly written for short-term emergencies in order to PREVENT a change in the US energy mix," Peskoe said. A projected 8.1GW of coal-fired generation is set to retire this year, equivalent to nearly 5pc of the coal fleet, the US Energy Information Administration said last month. Electric utilities often decide which plants to retire years in advance, allowing them to defer maintenance and to forgo capital investments in aging facilities. Keeping coal plants running could require exemptions from environmental rules or pricey capital investments, the costs of which would likely be distributed among other ratepayers. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump takes aim at state climate policies


09/04/25
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09/04/25

Trump takes aim at state climate policies

Washington, 9 April (Argus) — US president Donald Trump is threatening legal action against state climate and clean energy policies, a move that sent environmental markets sharply lower early Wednesday. Trump on Tuesday directed the Department of Justice to consider taking action against any states and local laws that hamper the development or use of domestic energy resources, with a specific focus on climate-related policies. US environmental markets stumbled in response to the president's executive order, with California Carbon Allowances (CCAs) for December 2025 delivery trading as low as $22.51/metric tonne on the Intercontinental Exchange and December 2025 Regional Greenhouse Gas Initiative (RGGI) CO2 allowances as low as $16/short ton, after being assessed Tuesday at $29.31/t and $21.52/st, respectively. California Low Carbon Fuel Standard futures on ICE also traded as low as $48/t, after going as high as $65.50/t Tuesday. Fears about the Trump order also spilled into the renewable energy certificate (REC) markets. Vintage 2026 PJM Class I traded as low as $28/MWh on the exchange to start the session, but last traded at $33/MWh. Argus assessed the vintage at $34.60/MWh on Tuesday. Trump's order specifically calls out California's cap-and-trade program, as well as "extortion laws" from New York and Vermont that seek to levy fees against fossil fuel companies for responsibility for historical GHG emissions. Such climate "superfund" laws are also being considered by a number of other states. But he also suggests state permitting decisions and other laws could be targeted as well. His order suggests that many of these policies run afoul of the US Constitution by imposing "significant barriers" to trade and discriminating against out-of-state energy sources, or though "arbitrary or excessive" fines. "These state laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living for voting in states with these crippling policies," Trump said. The president directed attorney general Pamela Bondi to report within 60 days on actions she has taken against state laws and to recommend any additional action by the White House or US Congress to stop enforcement of objectionable policies. Trump unsuccessfully attempted to sever the link between the California and Quebec carbon markets during his first term, on the grounds that it violated federal authority to establish trade and other agreements with foreign entities under the US Constitution. The office of California attorney general Rob Bonta (D) said it is reviewing Trump's order, and others he issued Tuesday that aim to bolster the use of coal-fired electricity. "But this much is clear: the Trump Administration continues to attempt to gut federal environmental protections and put the country at risk of falling further behind in our fight against climate change and environmental harm," the office said. "The California Department of Justice remains committed to using the full force of the law and tools of this office to address the climate crisis head on and protect public health and welfare." California earlier this year bolstered funding for its Department of Justice in anticipation of increased legal fights with the Trump administration. New York officials also said they are considering their next steps. The state participates in RGGI and has a renewable energy mandate, but it is also developing an economy-wide carbon market. "We are thoroughly reviewing the [executive order] to determine the potential impact to New Yorkers. The governor is committed to ensuring a clean, affordable and reliable energy grid in New York state," the office of governor Kathy Hochul (D) said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump issues executive orders to boost coal


08/04/25
News
08/04/25

Trump issues executive orders to boost coal

Cheyenne, 8 April (Argus) — US president Donald Trump signed four executive orders today aimed at increasing the country's coal production and use, including directing agencies to possibly expand access to federal land and use emergency authority to keep coal-fired power plants open. The orders follow up on a pledge Trump made on 17 March to authorize his administration "to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL." At the time of Trump's social media post, the White House did not elaborate on his plans. The executive orders signed today are primarily focused on US coal use and production. These include directing the chair of the National Energy Dominance Council to designate coal as a "mineral" covered under a previous executive order signed in March that uses emergency power granted under the Federal Power Act to fast track permit reviews for critical mineral projects. Today's orders also direct agencies to revoke policies that aim to move the US away from coal production or favor other generation resources over coal. This includes authorizing the Department of Justice to investigate state policies considered to be prejudicial against coal. The orders also direct agencies to identify coal resources on federal land and prioritize coal leasing on those lands, and orders the Secretary of the Interior to make it clear that a moratorium on federal coal leasing that was initially in effect from 2016-17 and reinstated from 2022-24 is no longer active. Trump also signed a proclamation allowing some coal plants to comply with a less stringent version of the EPA's mercury and air toxics standards for two years. Another order signed today directs the Secretary of Energy to "streamline, systemize, and expedite processes for issuing emergency orders under the Federal Power Act during forecasted grid interruptions." "We're slashing unnecessary regulations that targeted beautiful, clean coal" and "will end the government bias against coal", Trump said today before signing the orders at an event featuring coal miners and lawmakers from coal-producing states. The US is "going to produce energy the likes nobody has seen before." He said his administration is going to devise a "guarantee" that will ensure the industry and investment in coal projects will be protected from "the ups and downs" of politics, but did not elaborate on what that would be. Other parts of the orders have the Council of Environmental Quality assisting agencies in making some exclusions for coal under the National Environmental Policy Act, encourage coal-fired generation for artificial intelligence and call for the Secretary of Energy to consider whether coal used for steel production can be defined as a critical mineral. The orders also aim to promote coal and coal technology exports, including by possibly facilitating international offtake agreements for US coal. US coal exports rose in 2023 and 2024 but trading activity has faltered lately amid restrained steel production, limited coal-fired generation in some countries and uncertainty over recent tariffs and the US Trade Representatives proposal to charge Chinese-built and operated ships that do business in the US. The National Mining Association praised Trump's actions. "It's a stark shift from the prior administration's punitive regulatory agenda, hostile energy policies and unlawful land grabs," NMA chief executive officer Rich Nolan said before Trump signed the order. But environmental group Sierra Club warned the order will be costly. "Forcing coal plants to stay on line will cost Americans more, get more people sick with respiratory and heart conditions, and lead to more premature deaths," Sierra Club executive director Ben Jealous said. By Courtney Schlisserman Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Flooding on US rivers mires barge transit


07/04/25
News
07/04/25

Flooding on US rivers mires barge transit

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