BOGOTA, April 7 (Reuters) - Colombia's national mining
agency (ANM) said on Wednesday it has initially rejected a
request by coal miner Prodeco, a wholly-owned unit of miner and
commodity trader Glencore, to return two of its
Colombian concessions.
Anglo-Swiss company Glencore said in February Prodeco would
hand back its operations at the Calenturitas and La Jagua mines
to Colombia, after its request to keep the operations on care
and maintenance was denied by the ANM.
The two mines were placed on care and maintenance last March
amid the coronavirus pandemic.
Obligations which must be met before returning two of the
contracts for concessions included within La Jagua - including
for environmental management - remain outstanding, the ANM said
in a statement, making the request to return them "legally
inviable."
"It's not possible for the (agency) to approve the request
for resignation because it is not up-to-date in complying with
all contractual obligations at the time of submitting the
resignation, as required by the mining code," ANM president Juan
Miguel Duran said in a separate message.
While the request to hand back the DKP-141 and HKT-08031
contracts has initially been denied, the company can request to
relinquish the concessions again in the future.
A spokesman for London-listed Glencore declined to comment.
The two mining operations are made up of five concessions,
including one at Calenturitas. Resignation requests for the
three remaining concessions are still being evaluated, Duran
said, while a sixth concession at La Jagua finished in 2019.
Glencore's coal production in 2020 fell 24% to 106 million
tonnes, with Prodeco's output plummeting 76% to 3.8 million
tonnes.
Production at Cerrejon - a Colombian coal mine owned jointly
by Glencore, Anglo American and BHP - also fell
last year, declining 52% to 12.4 million tonnes.
(Reporting by Oliver Griffin
Editing by Marguerita Choy)