Colombia's coal production jumped 15.3 percent to 23.4 million tonnes in the second quarter versus a year ago, pushed up by more output in the two top producing provinces, data from the Andean country's mining regulator showed on Monday.
Colombia's coal industry is dominated by big producers with their own ports and railways such as Glencore, Drummond and Cerrejon, which is jointly owned by BHP Billiton , Anglo American and Xstrata.
The top three producers export all their output. The main markets for Colombian coal are the United States and Europe, although exporters have started to make inroads in Asia despite the high freight costs.
The largest production increases were in the Cesar province where Prodeco, Drummond and Goldman Sachs' local affiliates operate. Output in the region increased 14.3 percent to 11.94 million tonnes versus the same period last year. Cesar production fell 7 percent in the second quarter versus the first quarter, the data showed.
Output in La Guajira province - where Cerrejon, the country's largest exporter, has four of five licenses to mine - rose 20.4 percent to 9.38 million tonnes in the second quarter versus a year ago.
Quarter-on-quarter production increased 4.2 percent. The regulator did not give a reason for output changes, but all major coal miners are currently expanding their mines and infrastructure in Latin America's top coal exporter. Currently, the market is reeling from a three-week long rail strike that has paralyzed coal exports from Cesar.
The world's No. 4 coal exporter is experiencing a boom in investment in the oil and mining sectors following a U.S.-sponsored crackdown on illegal armed groups that has made it safer to explore and mine. Colombia's coal production is expected to increase to 97 million tonnes in 2012 from 85.8 million tonnes last year, the mining minister has said.