February 4 of 2020, Albania

Cerrejón paid COP 1.7 billion in taxes and royalties in 2019

  • Since 2002, the company has paid the government COP 18.5 billion in taxes and royalties.
  • Cerrejón exported 26.3 million tonnes of coal, primarily to Mediterranean countries.
  • In 2019, the company achieved a historic milestone in its low recordable injury frequency rate.

 

In 2019, despite the challenges in the Colombian mining sector, Cerrejón continued its mission of generating value for La Guajira and of continuing to implement good practices and standards throughout our activity. In this past year, the company exported 26.3 million tonnes of thermal coal, mainly to Mediterranean countries. This volume represented 34% of Colombian coal exports and 3% of the world coal market.

Cerrejón paid the government COP 1.7 billion in taxes and royalties in 2019, and in the last 18 years we paid COP 18.5 billion. In the course of our operations, the company effected purchasing and contracts in La Guajira for over COP 91.200 million from 162 locally-based suppliers.

It is worth noting that the company met its goal of continuing to be a safe workplace for over 11,000 direct and contractor firm workers (60% from La Guajira). We achieved our second best result in our recordable injury frequency rate and zero fatalities in our operations.

“2019 was very difficult for Cerrejón due to the national and international context facing the mining sector because of falling prices and decreased demand in our market. 2020 has the same challenges and will force us to transform in order to guarantee the company’s competitiveness and sustainability,” noted Claudia Bejarano, CEO of Cerrejón.

Last year was very challenging as well due to the impossibility of accessing certain mining areas, such as the north part of the La Puente Pit, after the engineering works for the partial modification of the course of Bruno Creek. This zone holds high-quality coal that will allow us to increase our production volume and competitiveness on the market, but access to it has been restricted since August of 2017 due to a legal ruling.

In social matters, the company invested more than COP 12.360 million to strengthen capabilities in the region, access to water, and implement strategic projects. Just in 2019, our social responsibility programs delivered 26.4 million litres of water to communities neighbouring our operations. A total of 153 billion litres of water have been provided since the department decreed a drought in 2014.

As part of our goal to steward water and biodiversity in La Guajira, Cerrejón has continued ensuring the efficient use of water in our operations. We use mining water (not apt for human or animal consumption nor for crop irrigation) in 89% of our processes, and just 11% is freshwater, which is mainly destined for communities and employee consumption. To date, Cerrejón has planted over 1.8 million trees in La Guajira and completed the reclamation of 4,208 hectares of land previously used for mining activities. This has contributed to the return of iconic species such as the jaguar, whose presence in itself is an indicator of an ecosystem’s good status and health.