HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Retired » Retired Forums » 2016 Postmortem (Forum) » Major environmental group... » Reply #30

Response to auntpurl (Reply #8)

Tue May 31, 2016, 11:27 AM

30. The Colombia Free Trade legislation supports continued use of coal and

has other less than progressive effects as well.

Drummond Coal is based in Alabama and has closed all but one union domestic coal mine (slated for closure) because of the purchase and operation of one of the world's largest coal mines in Colombia that started operations in 1995, The union coal that once fueled power generation for Alabama Power is now fueled by cheap Colombia coal. Drummond is the 5th largest coal exporter in the world thanks to Colombia coal. Drummond built a railroad and transport facility in Colombia and has been implicated in the funding of paramilitaries and murder of trade unionists and native peoples in Colombia, there have been prosecutions but no convictions to date. Drummond has been convicted and paid fines for environmental problems in Colombia as there is local resistance even from Colombia establishment, not just workers and poor that live on impacted land.

Drummond operations are one of the biggest beneficiaries of the Colombia free trade legislation. Drummond is a private company that has sold 20% of the Colombia operations to the Chinese. Gary Drummond, majority owner, is the richest person in Alabama and a Bushite.

The cheap coal from Colombia provided by Drummond is sold in the USA to the South and northeast. The Drummond coal is not only cheap but also of good quality and relatively low polluting compared to most coal. The large amount of cheap coal provided by Drummond is keeping coal plants online and suppresses shifts to natural gas and cleaner, renewable energies like solar and wind. The costs of transition, the low cost coal, and the fact that Drummond's Colombia operations are still relatively young in growth cycle and still expanding indicate that the Colombia free trade legislation represents a long term commitment to coal. Drummond is also the largest exporter of coal to northern Europe and has started exports to China. When there is a railroad and export facilty ion the Pacific side one could expect a great increase in exports to China. The huge reserves, high quality, cheap labor, cheap transportation, and relatively lax environmental controls indicate Drummond's Colombia coal will be here for some time. The Colombia free trade legislation locks this in and Drummond is the largest corporation in financial gain.

Here is some background;


Drummond Ltd. describes itself as "principally engaged in the business of mining, purchasing, processing and selling of coal and coal derivatives."[1]

On its website it states that it "controls reserves totaling over 2 billion tons and shipped over 24 million tons of coal in 2006. Drummond primarily produces low sulfur or compliance coal, meeting Phase II requirements of the 1990 Amendments to the Clean Air Act." The company's current mining operations are in Alabama in the United States and its La Loma mine in Cesar Department in Colombia, serving customers in both the U.S. and Europe.[1]

A November 2007 presentation to investment analysts by the President of BHP Billiton Coal, Dave Murray, noted that Drummond had an 5% share of the global coal export trade, making it the equal fifth largest coal exporter in the world. (Drummond is equal with Shenhua).[2]

Contents [hide]
1 Company History
2 Colombian Coal

2.1 Conflict in Colombia
2.2 WikiLeaks cables regarding paramilitary forces
2.3 Coverup of coal barge sinking

3 Alabama coal 3.1 Alabama Coal port expansion

4 Political and Public Influence

4.1 Coal Execs Invite Presidential Hopeful Jeb Bush to Closed-Door Weekend Retreat (2015)
4.2 Political Contributions
4.3 Lobbying

5 Corporate Accountability

5.1 Labor
5.2 Human Rights

6 Protests against Drummond 6.1 July 2007: Protesters demand justice for murdered workers


Colombia's Drummond coal exports to reach 28 mil mt in 2015: reports

Colombia's second largest thermal coal miner Drummond is to export 28 million mt in 2015, up from the previous year's 23.1 million mt, Drummond Colombia president Jose Miguel Linares said.

Speaking to journalists on Friday and as reported by various Colombian news outlets, Linares said the Fenoco nighttime rail ban, which affected shipments between February and November, cost the company between 4.5 million and 5.5 million mt of exports during the year.

However, if Fenoco railings continue unhindered in 2016, total exports are expected to reach 35 million mt, with output marginally lower than that, Linares said.

In a more detailed interview with Colombian financial daily La Republica, Linares said that assuming Colombian coal is priced at an average of $48/mt FOB, coal sales might be around $1.68 billion in 2016.


Why Drummond and Glencore are accused of exporting Colombian blood coal (July 2, 2014)

The push to boycott “blood coal” exported from Colombia by Drummond and Glencore is gaining momentum in Europe after the publication of a report in which dozens of victims and victimizers testified that the multinational mining companies financed and promoted death squads.

MORE: Drummond, Glencore subsidiary financed paramilitaries in Colombia: Report

What is blood coal?

“Blood coal,” a reference to the infamous “blood diamonds” mined amid conflict conditions in Africa, is the term used by the PAX peace organization to refer to coal extracted from areas in Colombia where paramilitary violence has been particularly severe. “According to all the testimonies, the mining companies invited the paramilitaries to come over and start operations.”

According to the Dutch NGO, coal coming from the Colombian mines of the Glencore and Drummond multinationals has been stained by blood, as several members of the death squads guilty of an estimated 2,600 homicides in the areas surrounding their mining operations have testified their formation was supported and financed by the mining firms.

The report has already spurred a debate in the Dutch Parliament around the importation of Colombian coal. The NGO wants parliament to ban the trade of Colombian coal until the multinationals in question have implemented appropriate measures to guarantee the end of human rights violations related to mining and compensated victims of the violence they are accused of having financed.

A quarter of the small European country’s total coal imports is deemed “blood coal” by the NGO. In total, the Netherlands imported 15.4 million tons of coal from Colombia last year.


Garry N. Drummond, Sr. (born c. 1939) is an American heir, business executive and philanthropist from Alabama. He serves as the Chairman and Chief Executive Officer of the Drummond Company, a private coal company active in Alabama and Colombia.
Drummond Company[edit]

In 1961, Drummond joined the family business, the Drummond Company, a coal company active in Alabama.[2][5] He later served as its Chief Operating Officer.[2] He has served as its Chairman and Chief Executive Officer since 1973.[1][2][3] The company is active in coal-mining in Alabama and Colombia.[3]

In 1979-1980, with his brother Larry and another executive, Clyde Black, Drummond was indicted of bribing three Alabama legislators, by supplying them with prostitutes.[3][6][7][8] The trial lasted three months, but it was dismissed by Judge Frank McFadden; the record is now sealed.[3][6]

In the 1980s, Drummond began looking for coal in Colombia, even though the country was at war.[3] He established their first coal mine in 1995.[3] Shortly after, the FARC bombed the railway track which carried coal from the Drummond mine to their port off the Caribbean Sea.[3]

As of 2015, Forbes lists Drummond as the wealthiest individual in Alabama, with an estimated wealth of US$980 million

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 50 replies Author Time Post
Henhouse May 2016 OP
Amimnoch May 2016 #1
peace13 May 2016 #2
cui bono May 2016 #3
YouDig May 2016 #19
Name removed May 2016 #20
YouDig May 2016 #21
anotherproletariat May 2016 #27
cui bono May 2016 #22
Lucinda May 2016 #4
LenaBaby61 May 2016 #5
Vinca May 2016 #6
seabeyond May 2016 #7
auntpurl May 2016 #8
Hortensis May 2016 #10
pinebox May 2016 #17
GRhodes May 2016 #28
cui bono May 2016 #48
peace13 May 2016 #29
LineLineReply The Colombia Free Trade legislation supports continued use of coal and
PufPuf23 May 2016 #30
PufPuf23 May 2016 #34
PufPuf23 May 2016 #36
cui bono May 2016 #44
Darb May 2016 #9
DCBob May 2016 #11
reddread May 2016 #12
DCBob May 2016 #13
reddread May 2016 #14
DCBob May 2016 #15
reddread May 2016 #16
auntpurl May 2016 #18
GRhodes May 2016 #31
cui bono May 2016 #24
DCBob May 2016 #33
cui bono May 2016 #38
kstewart33 May 2016 #23
PufPuf23 May 2016 #25
mmonk May 2016 #26
EndElectoral May 2016 #32
LAS14 May 2016 #35
cyberpj May 2016 #37
Carolina May 2016 #43
cui bono May 2016 #45
workinclasszero May 2016 #39
QC May 2016 #40
Carolina May 2016 #42
Carolina May 2016 #41
cui bono May 2016 #46
Carolina May 2016 #47
mikehiggins May 2016 #49
Bill USA May 2016 #50
Please login to view edit histories.