Carlos Cante Executive President FENALCARBÓN (NATIONAL FEDERATION OF COAL PRODUCERS)
How important is the coal industry for Colombia?
Colombia currently has a production capacity of 80 million t/y. There are over 1000 coal mining titles, with 95% held by small and medium-scale producers located primarily in the center of the country. In 2024, Colombia exported 64 million t of coal and coke, generating more than US$7 billion—around 14% of the country’s total exports.
The coal industry and its value chain supports over 650,000 direct and indirect jobs, contributes about 1% of GDP, and plays a major role in around 70 municipalities. How has the industry performed in the last year?
We are facing significant challenges. Europe used to be our traditional market, but today consumption has migrated to Asia, which represents over 30% of our exports, primarily to China, India, South Korea, and Japan. The long shipping distances add significant cost pressures, with freight costs to Asia nearly double that to the Mediterranean. Since 2022, coal prices have dropped, with geopolitical tensions affecting both demand and market values. This has forced the industry to adjust production cycles, including cutting back on production. Government measures, including a recently introduced tax on production, have further added to cost constraints. What is the government’s position regarding coal mining?
The government’s position has been quite divorced from the economic benefits that coal resources represent for the country. Since 2022, several policies and public statements have actively discouraged investment in the sector. These are not state-level decisions but rather the stance of the current administration, so we are hopeful that the next government, which will take office in 2026, will adopt a more rational approach. Do you have any final message for our readers?
Colombia has immense potential as a long-term supplier of thermal, metallurgical, and high-quality anthracite coal. We are ready to serve new global demand, particularly as more markets recognize the role of high-quality coal in reducing emissions and blending efficiency.
Homero Gomez Founder and CEO CARBOMAX
Could you elaborate on the mining business and your diversification focus?
Within our mining arm, we have three divisions. First, we operate open-pit thermal coal mines in the Córdoba region of Colombia, with an annual production capacity of 1 to 1.2 million t.
Our second division focuses on the production of metallurgical coal (coke) in Norte de Santander, in northeast Colombia, with a production capacity of 250,000 t/y from our underground operations. This low-phosphorus coking coal is highly valued in ferroalloy markets, particularly for ferrochrome production. We plan to double this capacity over the next three years while maintaining a focus on low-phosphorus content.
Third, we have a polymetallic unit conducting gold and copper exploration in La Guajira, specifically at the La Jagua del Pilar project. We are also exploring copper in Bosconia and in the Córdoba region near our thermal coal mines. In addition, we are developing an alluvial gold project that is set to begin production this year. Carbomax is launching a new production line for ferrosilicon. Could you comment on this expansion?
Carbomax is launching a new production line for ferrosilicon and silicon metal, and we have also set up a coal washing plant in Cúcuta, Norte de Santander, to serve silicon producers, a US$14 million project done in collaboration with Norwegian company CleanCarbon. The plant is completed, and we expect to ship the first industrial samples this year to various global markets. The new line completes our portfolio in the ferroalloy industry. Colombian coal producers are set to make major production cutbacks this year. Could you explain the context?
The supply glut has dramatically impacted prices of both thermal and met coal, and the prices are correcting back to 2019-2020 levels. However, due to the highly inflationary post-pandemic period, it is impossible for us as an industry to return to pre-pandemic price points. This is why most Colombian producers have significantly cut back on production.