From the Liveblog of
Friday, June 7, 2024
Potential Colombia ban on coal exports to Israel would hit foreign investment, says mining group
A possible ban by Colombia’s government on coal exports to Israel would violate international agreements and put market confidence and foreign investment at risk, the country’s private mining association says.
Bloomberg reported Thursday that the commerce ministry could bar coal shipments to Israel, after leftist President Gustavo Petro cut diplomatic ties with the Middle Eastern country in May in protest of its actions in Gaza.
A source at the commerce ministry tells Reuters there currently exists no order, resolution or decree which would prohibit or restrict coal exports to Israel.
Petro has strongly criticized Prime Minister Benjamin Netanyahu and Colombia has requested to join South Africa’s case accusing Israel of genocide at the International Court of Justice.
Colombia, the world’s fifth largest coal producer, sent 56.7 million metric tons of coal abroad last year, including 3 million tons to Israel, about 5.4% of total exports, according to government data.
“This decision would not comply with international commitments by Colombia that should be respected and puts at risk the confidence of markets and foreign investment,” the Colombian Mining Association (ACM) says in a statement.
Israel is a key destination for Colombian coal and shipments there generate about $165 million a year in taxes, royalties and other contributions.
A free trade agreement between Israel and Colombia has been in force since 2020, and the ACM said that the deal prevents imports and export restrictions between the two countries.
Drummond and Glencore GLEN.L are major private coal miners in Colombia.
