The Cerrejón Coal Mine: A Titan in Latin America’s Energy Landscape
The Cerrejón Coal Mine, located in the La Guajira department of Colombia, is a colossal operation that has shaped the country’s energy sector for decades. As the largest coal mine in Latin America and the tenth biggest in the world, Cerrejón has been a significant contributor to Colombia’s economic growth. However, its environmental and social impacts have drawn increasing scrutiny from activists, academics, and the global community.
Tracing the History and Ownership of Cerrejón
The Cerrejón Coal Mine has a complex history, with its origins dating back to the 1970s. In 1976, an association contract was signed between the state-owned coal company Carbocol S.A. and the ExxonMobil affiliate Intercor for the development of the Cerrejón North Zone. In 1999, the agreement was extended for an additional 25 years, until 2034.
In 2000, the Colombian government sold Carbocol’s 50% stake in the Cerrejón North Zone to a consortium of subsidiaries from BHP Billiton, Anglo American, and Glencore. Two years later, the consortium acquired the remaining 50% from Intercor, merging the operations into Carbones del Cerrejón LLC, which became the sole entity responsible for the Cerrejón mine.
In June 2021, Glencore announced that it had reached an agreement to acquire BHP and Anglo American’s 33.3% stakes in the Cerrejón mine, effectively giving the company 100% control of the operation. This consolidation of ownership under Glencore has further cemented the mine’s position as a major player in the global coal market.
The Scope and Scale of the Cerrejón Operation
The Cerrejón mine is a vast open-pit operation that encompasses four distinct zones: the North Zone, the Central Zone, the Patilla area, and the South Zone. The scale of the mining activities is truly staggering, with the company boasting that it moves approximately one million tonnes of material every day, 365 days a year.
To achieve this level of production, the Cerrejón operation runs one of the largest fleets of shovels and trucks in the world, employing nearly 4,000 people directly and an additional 4,000 contractors. The mine’s reserve base is estimated to be in excess of 900 million tonnes, making it one of the largest coal deposits globally.
The Fluctuating Production and Evolving Export Markets
Production at the Cerrejón mine has been marked by both growth and decline over the years. The operation reached its peak production levels between 2012 and 2014, with total output in the 2013/2014 financial year reaching 36.9 million tonnes. However, in subsequent years, production has faced challenges, declining by 33% in 2019-2020 due to worker strikes and the COVID-19 pandemic, and a further 30% in 2020-2021, in part due to a 91-day strike.
Despite these fluctuations, the Cerrejón Coal Company has reported that annual production had largely recovered by the end of 2021, falling only about 10% shy of 2019 levels. However, the company’s 2022 Sustainability Report described impaired operations due to increased rainfall during the La Niña year and challenges from community blockades, resulting in a decrease in coal production that year.
The export markets for Cerrejón’s coal have also evolved over time. In 2009, the company reported that 56% of its production was exported to Europe, 17% to North America, 12% to Central and South America, and 15% to “other destinations.” By 2020, the company’s export markets had shifted, with 43% of the mine’s exports shipped to the Mediterranean region, 26% to the Americas, 15% to Asia, and 15% to other countries in non-Mediterranean Europe.
Environmental and Social Impacts: A Contentious Legacy
The Cerrejón Coal Mine has been the subject of intense scrutiny and criticism regarding its environmental and social impacts on local communities. Environmentalists, activists, and academics have documented a range of negative effects, including the forcible displacement of the Afro-descendant Tabaco people, water pollution, and damage to the traditional agricultural economy.
A comprehensive environmental study by the Institute for Development and Peace Studies (Indepaz), a non-governmental organization based in Bogotá, found high levels of heavy metal contamination in local soil and water samples, as well as high levels of airborne particulate matter around the area of Cerrejón. In response, Cerrejón officials have questioned the study’s methodologies and equipment.
In September 2020, the United Nations Special Rapporteur for Human Rights and the Environment, David Boyd, called for the suspension of the mine “until it can be shown to be safe.” This call was further bolstered in January 2021, when it was announced that BHP, Glencore, and Anglo American would face an investigation over the mine’s environmental and human rights impacts, under the terms of the OECD Guidelines for Multinational Enterprises.
Community Resistance and Ongoing Conflicts
In the face of these environmental and social challenges, local communities have organized and mobilized to resist the impacts of the Cerrejón mine. In May 2021, Cerrejón coal announced that it had suspended operations at the mine as the result of a railway blockade organized by former workers.
More recently, in September 2022, the communities of Papayal, Manantialito, Barrancón, Vereda de Sierra Azul, Cocotazo, San Francisco, Tamaquito II, and other resettled communities organized to block the Cerrejón mine’s southern operation. These community members stated that the mining company had not complied with prior judgments and refused to work with the community on issues such as access to water, social investment, and jobs.
As of September 2022, these peaceful roadblocks by indigenous activists had reduced Cerrejón’s thermal coal production by 70%, highlighting the continued resistance and determination of local communities to address the mine’s impacts.
Navigating the Complexities of Extractive Industries
The Cerrejón Coal Mine exemplifies the complex and often contentious nature of extractive industries operating in developing countries. While the mine has been a significant contributor to Colombia’s economic growth, its environmental and social impacts have had profound consequences for local communities.
As the global energy landscape continues to evolve, the Cerrejón mine’s future remains uncertain. Ongoing conflicts with local communities, heightened environmental scrutiny, and the broader shift away from fossil fuels will likely shape the mine’s trajectory in the years to come.
For organizations and individuals working in the water and sanitation sector, the Cerrejón case highlights the importance of community engagement, advocacy, and a holistic approach to addressing the intersections between extractive industries, environmental sustainability, and human rights.
By staying informed, amplifying the voices of affected communities, and advocating for responsible and accountable practices, we can work towards a future where the benefits of economic development are more equitably distributed, and the rights and wellbeing of local populations are prioritized.
To learn more about the Joint Action for Water initiative and how you can get involved, please visit https://jointactionforwater.org/.
