en.Wedoany.com Reported - Glencore (LON: GLEN) has resumed operations at its Cerrejón coal mine in Colombia, following a 10-day railway blockade that forced one of the world's largest open-pit coal mines to suspend activities and declare force majeure.
Glencore said on Wednesday that it had begun restarting operations after lifting the force majeure declaration at 6 p.m. on June 2. The supply of critical materials has resumed, following the blockade that prevented the transport of supplies needed to sustain production and export activities.
The company noted that it has resumed operational activities and remains committed to building a sustainable future for its employees, local communities, the department of La Guajira, and Colombia. Safety remains a core value, and every phase of the restart process is conducted under the necessary conditions to protect people, the environment, and operations.
The restart highlights the growing operational challenges in Colombia's mining sector. Community protests, infrastructure disruptions, and policy uncertainty continue to pressure investment and production decisions. Cerrejón is one of Colombia's most important export operations and a major supplier to the Atlantic thermal coal market.
The latest shutdown occurred after a series of disruptions that have increasingly affected operations. Since the beginning of this year, Cerrejón has experienced nearly 80 blockades, most of which are related to protests against government authorities due to a lack of basic services in nearby communities, rather than disputes with the company itself.
The mining company recorded 333 blockades in 2024, equivalent to 135 days of operational disruption. In 2023, it reported 201 blockades and nine terrorist attacks, resulting in 95 days of coal transport interruptions. The company also faces uncertainty over a temporary 1% export tax and a weak coal market. Cerrejón produced 16.8 million tons of coal in 2024, down 12% year-on-year, and has announced plans to reduce annual production by 5 to 10 million tons to address oversupply in the Atlantic thermal coal market.
The restart comes as investors increasingly bet on a political shift in Colombia following Sunday's presidential election. The Colombian peso recorded its largest single-day gain in four years, while bonds and stocks also rose. This followed the surprise first-round victory of right-wing outsider Abelardo de la Espriella, who became the frontrunner ahead of the June 21 runoff against left-wing candidate Ivan Cepeda.
Colombia's dollar bonds maturing in 2054 rose more than 4 cents per dollar, the peso gained 3.6% against the dollar, and the benchmark stock index rose as much as 7.1%. State-owned oil company Ecopetrol surged nearly 10% during the session, as markets anticipated that a new government might support resource development and reverse some of President Gustavo Petro's energy policies.
De la Espriella, who received 43.7% of the vote, has promised tax cuts, limits on public spending, and support for business investment. Petro's ally Cepeda, who received 40.9% of the vote, advocates for expanded social spending and opposes measures such as hydraulic fracturing and new oil exploration.
For mining companies, election optimism may not immediately resolve on-the-ground challenges. The latest shutdown at Cerrejón illustrates how community disputes, infrastructure disruptions, and regulatory uncertainty continue to threaten production in one of Latin America's most important coal-producing regions. The company remains deeply divided with local communities over many of the issues behind the blockades. Even if disputes are resolved, repeated disruptions may continue to pressure output, exports, and investment decisions in Colombia's mining sector.
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