Glencore Xstra (LSE:GLEN)
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(Updates with confirmation that the coal was Prodeco's.)
By Dan Molinski
BOGOTA--A train carrying coal for Glencore International PLC's (GLNCY, GLEN.LN) local unit Prodeco derailed in northern Colombia due to a welding problem, Mines and Energy Minister Mauricio Cardenas said Thursday.
Twenty-three loaded cars came off the tracks in the accident and there were no injuries, Cardenas said in a message on the microblogging website Twitter.
"Prodeco has already begin a contingency plan to remove the derailed cars and coal from the ground," the minister said.
The accident occurred between the cities of Santa Marta and Cienega, located on Colombia's northern Atlantic coast, the minister said.
Alabama-based Drummond also uses the tracks in the area where the accident occurred. It wasn't clear whether the railroad's operations have been halted.
The transportation company that operates the train is Ferrocarriles Del Norte de Colombia SA, or Fenoco. Brazilian mining giant Vale SA (VALE, VALE5.BR) has an 8.4% equity stake in Fenoco, although Vale said last month it plans to sell its thermal coal assets in Colombia--including the Fenoco stake--to CPC S.A.S., a unit of privately-held Colombian Natural Resources SAS.
Colombia is world's fourth-largest coal producer, with output of more than 80 million metric tons a year, most for export.
Write to Dan Molinski at email@example.com