Drummond Declares Force Majeure, Notifies Customers

Drummond Company Inc. announced that as a result of the Colombian government’s decision not to allow it to export coal from any of its operations in the country, it has been forced to declare force majeure.

In a notice to customers, the company said:

 We regret to inform you that Interocean must declare Force Majeure as a result of actions taken against Drummond in Colombia at our port in Cienaga. Drummond experienced a long and protracted labor strike last year, of almost two months, during which time all of its operations in Colombia were under Force Majeure.

As a result of the strike and duration of its effects, the building of the fixed pier at Puerto Drummond was delayed. Drummond undertook intense talks and negotiations with the Colombian government to delay the implementation date of a direct ship loading system for three months to allow us to complete the construction. However, yesterday Drummond received notice that as of Monday night, January 13, 2014, the Colombian government will be closing the port until the direct ship loading system is completed.

This action leaves us no choice other than to declare Force Majeure effective January 13, 2014. We shall continue our efforts and discussions with the Colombian government to explore alternatives for the port closure issue, but absent consideration of other possible alternatives by the government we anticipate loading will be suspended until March 2014. Should we have any updates to this time frame you will promptly be informed

Click here to read the full Drummond Company Inc. press release.