Colombia's top coal exporter Cerrejon LLC is reducing its shipments to Asia as it becomes increasingly difficult for the company to compete on prices in that market with coal firms from Australia and Indonesia.
Mr Leon Teicher president of Cerrejon said that Asia will represent about 5% of the company's coal exports this year, down from 10% in 2010.
Cerrejon, which is equally owned by mining giants Xstrata PLC, Anglo American PLC and BHP Billiton will instead focus its efforts in its natural markets which include the US and Europe.
He added that "Our expansion plans are not based on Asia.”
The company is currently engaging in an expansion plan to lift coal output to 40 million tonnes per year from the current 32 millions tonnes it's producing. The project will start in September and will last until 2013, representing a USD 1.3 billion investment for the company's shareholders. The company expects production will increase to 37 million tonnes in 2014 and 40 million tonnes in 2015.
(Sourced from Dow Jones Newswires)
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