Coal Project in Colombia
In 2011, ITOCHU acquired a 20% equity stake in Drummond International LLC (headquarters: Alabama, USA; hereinafter “Drummond”), which owns coal mines and the infrastructure in Colombia, South America for producing, transporting and selling coal. To further strengthen its partnership with Drummond, ITOCHU established ITOCHU Coal Americas Inc. (ICA) at the time when it acquired the interest.
Since the beginning of the operation in 1995, Drummond has owned transportation infrastructure and port facilities used in its operation. Coal reserve is approximately 1.9 billion metric tons. Drummond produces high-quality thermal coal with high calorific value, low sulfur and low ash, at a low cost, and sells it to both Atlantic and Pacific markets. Together with ITOCHU since 2011, Drummond has executed the purchase of additional mining equipment, enhanced the railroad system and expanded its port. In 2016 sales volume reached 33 million metric tons, making Drummond the No. 1 coal exporter in Colombia. In addition to coal exports, Drummond’s coal mining operation promotes Colombia’s economic growth through job creation and enhancement of coal supporting industries.
ITOCHU will continue to develop its Colombian coal mine and infrastructure business, and proactively promote coal into the global market, including Japan, to which ITOCHU is granted exclusive marketing rights.