Cerrejon Coal Company

  • Ownership: 33.3 per cent
  • Product: Energy coal
  • Location: Guajira Peninsular in north east Colombia, South America

Cerrejon Coal is Colombia's largest coal exporting company. All coal is exported through the Puerto Bolivar terminal, which is linked to the operations by a rail line dedicated to coal transport.

The operation is a joint venture owned in equal parts by a consortium comprising BHP Billiton, Anglo American and Xstrata.

Operations

The amalgamation of Carbones del Cerrejon (CdelC) and Cerrejon Zona Norte (CZN) created one of the world's foremost producers of export energy coal, consolidating Colombia's position as a leading supplier of energy coal to the European market.

The Cerrejon coal deposits are located in the Guajira region of northern Colombia.

Cerrejon's open cut mines now represent one of the biggest earthmoving operations worldwide. Approximately one million tonnes of material are moved every day, 365 days per year. To achieve this, the operation runs one of the biggest fleets of shovels and trucks in the world. The company employs nearly 4,000 people, with approximately the same number engaged as contractors.

Markets

Coal is independently marketed through a third party company and is exported largely to Europe, but also to the USA and South America.

History

BHP Billiton acquired a one third interest in the CdelC mining operation from Anglo American and Glencore in September 2000.

In November 2000 the consortium, consisting of Anglo American, BHP Billiton and Glencore successfully bid for 50 per cent interest of the neighbouring CZN mine. The remaining 50 per cent of CZN was held by Intercor, the mine management company owned by ExxonMobil. Recognising that a combined operation of CdelC an CZN would generate synergies, the consortium commenced negotiations with ExxonMobil to acquire CZN's mine management company. The transaction was completed in February 2002.

The combined operations of CdelC and CZN became known as Cerrejon Coal Company (CCC).

For further information about Cerrejon visit their website.