Colombia accepts relinquishment of Glencore's Prodeco contracts
Diversified major Glencore said on Monday that Colombia had accepted the previously-denied request of its Prodeco subsidiary to hand back its licences for coal mines in that country.
Glencore in February approached the government to start the process of relinquishing its contracts after the National Mining Agency (ANM) declined a request to prolong the shutdown of the Calenturitas and La Jagua mines.
The mining company argues that the mines, which were placed on care and maintenance in March 2020, are uneconomic to operate.
Glencore reported on Monday that the mines would remain on care and maintenance while the process to relinquish the contracts was completed.
Glencore also confirmed that it would “comply fully with all its environmental and social obligations arising from its mining operations and the termination thereof”.
Newswire Bloomberg previously cited Mines and Energy Minister Diego Mesa as saying that Colombia hoped to find a new operator for the mines that Glencore is handing back. The country would be pitching the mines to Asian operators.
Glencore also owns the Cerrejon mine, in Colombia, and recently struck a $588-million deal to acquire full ownership for the coal mine from joint venture partners BHP and Anglo American.
The commodities major has a stated commitment to responsibly manage the decline of its coal portfolio, while its diversified peers are exiting coal mining.
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