Glencore's Cerrejón Cuts Colombia Coal Output Up to 10 Million Tons

Glencore has announced a significant reduction in coal production at its Cerrejón mine in Colombia, cutting output by 5 to 10 million tons annually due to unsustainable maritime transport prices. This decision brings projected production down to between 11 and 16 million tons, reflecting the ongoing slump in coal prices exacerbated by oversupply from India and China, with Newcastle coal futures dropping to around $100 per ton. The company, which saw record profits during the energy crisis, is now facing declining earnings and has indicated that adjusting production levels is necessary to maintain operational sustainability. Cerrejón's president highlighted the challenges posed by community blockades and the need for legal certainty to ensure the mine's viability and the region's economic future. Despite the reduction, coal remains an essential energy source, with the company committed to balancing its production with environmental and social responsibilities. The overall coal market is under pressure, with natural gas emerging as a more competitive energy option.