The union warns of a reduction of more than 10 million tons in production and exports during 2025.
Carlos Cante, president of the union, warned about a reduction of more than 10 million tons in the production and export of thermal and metallurgical coal, and warned that the tax burden and insecurity in the regions are putting employment and royalties at risk.
During the Colombian Coal Summit 2025the president of FenalcharcoalCarlos Cante, warned that the sector faces one of the largest reductions in production and exports in recent years, with a direct impact on the finances of the country and the producing regions.
“Last year coal contributed close to 8 billion pesos between income and royalties; This year we will be close to 5 billion“said Cante. As he explained, the sector is going through three main shocks: that of international markets, the fall in prices and a”institutional clash” generated by administrative and tax measures that have affected competitiveness.
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“We must reduce the persecution of the sector”
Cante was emphatic that the current tax policy is leading to paralysis of part of the industry.
“We must reduce the persecution of the sector, because this tax persecution does not lead to greater collection. Since there is no margin, we are not competitive and it is not possible to remove the coals due to high transportation costs, production and exports are reduced. “That means less taxes and fewer royalties,” he said.
The union leader explained that the rent advance rate went from 1.6% to 4.5%, which implies that companies are advancing more to the State than they can pay.
“We are anticipating excess income that we estimate for 2025 at close to 2 trillion pesos. That money is not part of the margin. That is why many companies prefer not to produce or export.”
According to Fenalcarbón, this situation could translate into a drop of nearly 20 million tons of productionequivalent to between 2 and 2.5 billion pesos less in royalties for territorial entities.
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Security: “we continue the same as before”
The president of the union also referred to the public order situation in the mining areas.
“The only thing the security excuse has brought to the sector is a tax. In terms of security we remain exactly the same: express kidnappings, extortions and restrictions on the movement of cargo are daily occurrences.”, he stated.
According to Cante, many operations have had to close because they did not accept pressure from illegal armed groups. “A while ago multinational companies had to hand over their operations, and no one believed us. Now that Ecopetrol says it, they are beginning to believe that the situation is real.”
Energy crisis and the role of coal
Faced with the energy panorama, Cante assured that the country is already experiencing a crisis. “The energy crisis is not going to come, we are already experiencing it. There is a gas shortage and energy demand exceeds installed capacity.”
In this context, he maintained that coal must once again be part of the national energy security and productivity agenda. “Coal has to return, but with cutting-edge technologies that guarantee the country’s energy reliability.”
Impact on employment and small mining
Cante also warned about the deterioration of employment, especially in areas where small and medium-sized mining operates. “If there is less production and fewer exports, the same level of employment cannot be maintained.”
Fenalcarbón estimates that in municipalities such as Lenguazaque, Guachetá, Paipa or Puerto Libertadorthe level of employment has fallen to 60%. “Small-scale mining cannot endure a lack of demand and low prices for long.”
Source: Integrated Information System
