Colombia stands up to Big Coal
Colombia鈥檚 government is making a big show of prosecuting US coal producer Drummond for a series of environmental blunders, says our correspondent in Medell铆n. The case is reverberating all the way to Europe, where coal prices spiked聽on Jan. 9 when the government suspended Drummond鈥檚 shipping activities.
Some see the developments as a sign the government is taking a tougher environmental stance with dirty coal. Last month the environment minister also promised to bring forward legislation requiring environmental permits for mining exploration.
鈥淭his is one of the few times the Colombian government has put its foot down,鈥� says our correspondent. 鈥淚t鈥檚 a very significant.鈥�
But the case is unlikely to presage any significant legal or environmental troubles ahead for Big Coal in聽the South American country, which is eager for the industry鈥檚 foreign direct investment, our correspondent adds. The spotlight may have more to do with Drummond鈥檚 shady history and President Juan Manuel Santos鈥檚 plans to stand for reelection in the May election.
鈥淚鈥檓 skeptical if this represents real change,鈥� says our correspondent. 鈥淕iven the Colombian government鈥檚 relationship to the sector, I would be surprised if it continued to take a hard line.鈥�
The government鈥檚 chief prosecutor announced last week that six Drummond employees will be charged with environmental damages for spilling some 200 metric tons of coal into the bay of Santa Marta in January 2013, for which the company was already fined $3.6 million. The incident was exposed by a Colombian photojournalist, which only increased the story鈥檚 media appeal.
On top of that, last month the government hit Drummond with聽聽in allegedly unpaid back taxes and also聽ordered the Alabama-based company to suspend all coal-loading operations until it upgraded its facilities to meet new environmental standards that kicked in Jan. 1....For the rest of the story, continue reading at our new business publication聽
