La Jagua coal mine

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The La Jagua coal mine was a surface coal mine located in Cesar, Colombia, South America.[1]

The mine, which had been on care and maintenance since March 2020, permanently closed in September 2021.[2]

Location

The map below shows the exact location of the now-closed mine.

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Background

The La Jagua operation was comprised of three pits: Carbones El Tesoro (CET), Consorcio Minero Unido (CMU), and Carbones de La Jagua (CDJ).[3] The Prodeco Group, which is a subsidiary of Glencore, owned and operated the La Jagua coal mine.

According to a Glencore 2019 report, at that time, La Jagua had a remaining mine life of 10 years and a mining license expiration of between 2027 and 2038.[3]

In March 2020, Prodeco declared a COVID-19 "force majeure", and the mine was put on care and maintenance.[4]

Closure

Prodeco had sought permission to keep La Jagua and its Calenturitas coal mine on care and maintenance, but the request was denied by Colombia’s National Mining Agency (ANM) in December 2020.[2] Following this, Prodeco conducted another operational review of the mine to identify further cost efficiencies, given that the ANM expected prices to remain low in Prodeco’s target markets. But the company said the result wasn’t any different from those previously conducted and La Jagua continued to remain too uneconomic to recommence operations.[2] As a result, Carbones de La Jagua S.A., Consorcio Minero Unido S.A., Carbones El Tesoro S.A., which were titleholders of La Jagua, filed their relinquishment of said contracts on 4 February, 2021. The ANM accepted the relinquishment on 3 September of the same year, effectively terminating the contract, ceasing operations, and initiating the liquidation phase.[4]

It was the intent of the previous Iván Duque-led government to seek new operators for both the Calenturitas and the La Jagua mine and reopen them, however that plan never came to fruition.[5]

Mine Details

  • Operator: Prodeco Group
  • Owner: Prodeco Group (Glencore)
  • Location: La Jagua de Ibirico Municipality, Cesar, Colombia, South America[1]
  • Coordinates: 9.57381151,-73.30075889 (Exact)
  • Status: Retired
  • Production: 6.2 million tonnes per annum (2016)[6]
  • Total Resource: 75 million tonnes (2020)[7]
  • Total Reserves: 65 million tonnes (2019)[3]
  • Coal Type: (Thermal)
  • Mine Type: Surface
  • Start Year:
  • Source of Financing:

Articles and resources

References

  1. 1.0 1.1 "Mines", Prodeco Group website, Accessed August 2023.
  2. 2.0 2.1 2.2 "Update 3-Glencore to return Prodeco's coal mining contracts to Colombia", Reuters, 4 February 2021.
  3. 3.0 3.1 3.2 Glencore Resources and Reserves as at 31 December 2019, Glencore website, Accessed August 2023.
  4. 4.0 4.1 "Termination of Our Mining Operations", Prodeco Group website, Accessed August 2023.
  5. Maria Monica Monsalve S., "Las minas de carbón que Colombia planea abrir amenazan con duplicar el metano del sector", El País, 18 April 2023.
  6. "La Jagua Mine", Mining Data Solutions, Accessed August 2023.
  7. Glencore Resources and Reserves as at 31 December 2021, Glencore website, Accessed August 2023.

External articles