US coal producer Drummond announced on Tuesday that it canceled the sale process of its mining and transportation operation in Colombia, which had begun in November last year.
Drummond, which in 2017 was the first producer and exporter of thermal coal in Colombia, did not immediately provide an explanation on the suspension of the process, for which it had hired Goldman Sachs as an investment bank.
“Drummond Company Inc. announced this week that it has canceled the sale process of its Colombian coal assets and that Drummond’s operations in Colombia will continue as they have so far,” the company said in a statement.
Goldman Sachs refrained from commenting.
The company produces coal in the open pit mines of Pribbenow and El Descanso, located in the department of Cesar, in northern Colombia.
Drummond sold in 2011 a 20% stake of its operations in the Andean country for US $1.500 billion to Itochu of Japan. The company’s production in 2017 reached 32.4 million tons and exports 32.3 million tons.
In addition to Drummond, the Colombian coal sector is dominated by Cerrejón, jointly owned by BHP Billiton PLC, Anglo American Plc and Glencore Xstrata plc; and Prodeco, a unit of Glencore Xstrata. Colombia, the fifth world exporter of coal, recorded a production of 89.4 million tons in 2017.