December 2015
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World Coal
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11
FEELING THE
Barry Baxter reports on Colombia and its coal industry,
as the country faces financial headwinds on the back
of falling commodity prices.
A
major driver of Colombia’s strong growth over the last ten years has been the
growing production and export of coal made possible through continuing
foreign direct investment into the commodity sector. With production of
88.6 million t during 2014, Colombia became the world’s 11th largest producer
of coal and, over 2013, was estimated to be the 4th largest exporter. Production in 2015 is
expected to be between 87 and 97 million t with recent estimates in favour of the lower
figures, largely due to increasing market uncertainties. In the longer term, both production
and exports are slowing, while there are also fears that the investment climate faces
downside risks.
Production
Over the five-year period 2005 – 2009, production grew 23%, but over the following five-year
period (2010 to 2014), growth was four points down at 19%.
According to the first official 2015 production forecast, growth over the five years since 2011
will drop only marginally by <1 – 1% against the previous five years. However, it is more
PINCH?
View of the historic centre of Cartagena, Colombia
