Thermal coal oversupply in the Atlantic market and logistics costs have led to very poor performance at Brazilian miner Vale’s Colombian coal mines, Reuters reported. In July, Vale reported that its overall second quarter profits fell 84% from the same period of 2008 due to lower iron ore output and prices. Vale bought 100% of the coal assets of Cementos Argos SA in Colombia in December 2008 for $305.8 million. These consist of the El Hatillo opencast mine, which produced 1.8 million metric tons for export in 2008, and the Cerro Largo reserve. Vale has been forced by low sales and logistical problems to almost fill its stockpile capacity at the mine.
