WHY COAL
AN ESSENTIAL RESOURCE POWERING PROGRESS
Coal
Coal has been a cornerstone of global development for centuries, fueling economies and providing reliable energy to billions of people worldwide. While the world transitions towards a more diversified energy mix, coal remains a vital resource for many reasons:
A Reliable and Abundant Energy Source
- Baseload Power: Coal-fired power plants are dependable sources of electricity, capable of operating 24/7 and meeting fluctuating energy demands. They provide the essential baseload power that underpins modern society.
- Global Accessibility: Coal is found in abundance across the globe, making it a readily available energy source for many countries, particularly those with developing economies. This accessibility plays a crucial role in reducing energy poverty and promoting economic growth.
Economic and Social Catalyst
- Job Creation: The coal industry provides millions of jobs worldwide, supporting livelihoods and driving economic development in both mining communities and downstream industries.
- Infrastructure Development: Coal-fired power plants and the infrastructure required for coal transportation and processing contribute to overall infrastructure development, stimulating economic growth and improving quality of life.
- Affordable Energy: Coal remains a relatively affordable energy source, making it accessible to a wider population and helping to reduce energy costs for businesses and consumers.
A Bridge to a Sustainable Future
- Energy Transition: While the world is transitioning towards renewable energy sources, coal will continue to play a vital role in the energy mix for years to come. It provides a reliable and affordable bridge as renewable technologies continue to mature and become more widespread.
- Clean Coal Technologies: Drummond Company is committed to investing in clean coal technologies, such as carbon capture and storage (CCS), to reduce emissions and minimize the environmental impact of coal use.
- Responsible Mining Practices: We prioritize environmental stewardship and sustainable mining practices to ensure that coal extraction and utilization are conducted in a responsible and ethical manner.
Why Coal?
Coal has many uses worldwide, the most significant uses being electricity generation, steel production, cement manufacturing, and liquid fuel production.
Coal is safe, reliable, easily stored, and readily available. The immense size of the world’s coal reserves means that it will be available for the foreseeable future. The ratio of coal reserves to production is approximately 2.6 times that of oil and 1.9 times that of natural gas.
Industry Resources
We encourage you to use the following websites to learn more. Because Drummond does not manage these sites, we do not endorse all expressed facts or opinions.
Education
Alabama Mining Association
American Coal Council
American Institute of Mining, Metallurgical and Petroleum Engineers
Edison Electric Institute
Electric Power Research Institute
FutureCoal
International Research Center for Energy and Economic Development
National Association of Regulatory Utility Commissioners
National Energy Foundation
National Mining Association
North American Electric Reliability Council
Society for Mining, Metallurgy and Exploration
Government
United States
Alabama Surface Mining Commission
National Coal Council
U.S. Bureau of Land Management
U.S. Department of Energy
U.S. Department of the Interior
U.S. Environmental Protection Agency
U.S. Fish and Wildlife Service
U.S. Geological Survey
U.S. Mine Safety and Health Administration
U.S. National Energy Technology Laboratory
U.S. Office of Surface Mining, Reclamation and Enforcement
Colombia
Coal Sales
Drummond Company has an excellent reputation in both the domestic and international coal markets due to our extensive quality control program, reliable delivery, excellent service, and high-quality products. We combine more than 85 years of coal mining expertise in the United States and over 25 years of experience in Colombia. Our rigorous quality controls ensure that our customers’ specifications are consistently met.
Drummond Company’s produced steam coal helps satisfy higher standards in energy demand and our expertise allows us to deliver unparalleled efficiencies for our customers. We are extremely conscious of and reactive to the ever-changing needs in the marketplace. Most recently, we have responded to the market’s need for eco-friendly, economical coal production by focusing our efforts in Colombia. The primary impact of our Colombian coal is the reduction in sulfur dioxide output, resulting from lower inherent sulfur. Additionally, as utilities face more stringent environmental requirements, consumption of Drummond Company coal is a lower-cost compliance strategy for unscrubbed units and a lower operating cost strategy for scrubbed units. Additionally, Drummond’s Colombian coal is low in ash content, which helps reduce ash disposal costs for Drummond’s customers.
Drummond Company’s coal is marketed and sold globally, serving customers in Europe and the Mediterranean, the United States, South America, and Asia. On-time delivery of our coal is ensured by our proximity to and ownership of both rail and ports (which accommodate both large and small vessels).
Coal Mines
Our Colombian steam coal meets worldwide sulfur regulations and is also very low in mono-nitrogen oxides emissions, which is highly desirable to utility plants required to lower these emissions. In addition, our affiliate companies market Colombian steam coal internationally.
The Drummond Company operation includes the Mina Pribbenow, El Descanso, and El Corozo open-pit coal mines located in the Cesar Coal Basin near La Loma; Puerto Drummond, a deep-water ocean port on the Caribbean Sea near Santa Marta; and coal transportation and handling facilities. Drummond Company transports the coal from the mines 120 miles by railcar on the renovated portion of the Colombian National Railroad System directly to Puerto Drummond, the deep-water ocean port. This port has the capability to load all sizes of vessels from handy-size up to the largest capesize.
Heavy investment in production infrastructure has allowed us to grow shipments of Colombian coal from one million tons in 1995 to over 30 million tons annually.
Our Coal Delivery Process
Unlike many coal providers, Drummond Company offers a complete system for our clients. We can arrange transport and door-to-door delivery. Often this results in lower cost, faster delivery, and less operational expenses for our clients. As a global provider of high-quality coal, we deliver our products globally.
An example of our coal delivery process:
- For international customers, we start at one of our three Colombian mines. Our international coal originates from either the Pribbenow, El Descanso, or El Corozo mines, which are all located near La Loma, Colombia.
- At Mina Pribbenow and El Descanso, Drummond has draglines in place to remove alluvial soil.
- Through drilling and blasting, overburden is loosened and removed so that coal can be more easily extracted. Shovels, apron feeders, and haul trucks relocate the overburden to secondary sites for later repurposing.
- Once overburden is removed, backhoes load trucks with coal for transport to the mine stockyard and coal load-out system.
- Using proprietary techniques established by Drummond Company, the coal is loaded into railcars directly from Drummond's stockyard.
- Once loaded, trains move coal to Puerto Drummond, Ciénaga, Colombia, where it is unloaded into holding areas.
- Two 84-inch conveyor belts with a capacity of 8,000 tons per hour each move the coal from the train unloading points or from the collection systems from the storage yard to the ship loading pier.
- The pier can accommodate up to four capesize ships and it has two ship loaders with a capacity of 8,000 tons per hour each. This infrastructure allows for the loading of two ships simultaneously and together they make Puerto Drummond the most modern terminal in South America and one of the largest in the world, with an annual capacity of 60 million tons.
- Ships with capacities that range from 40,000 to 185,000 tons transport coal to various countries in Europe, Asia, and the Americas. These trips can take two days if the destination is the Caribbean, or up to 18 or 45 days if they are going to the Middle or Far East, respectively.
MORE ABOUT
Our Reach
While coal use has evolved and production has grown tremendously from the days of locomotive engines and potbelly stoves, it remains an essential component in our everyday lives. Coal-fueled electrical power is used to light homes, schools, offices, and shopping centers. Industrial facilities generate both heat and power for industrial uses. The global demand for energy is ever-increasing, as nations grow and develop, and as new power-intensive applications emerge. Today, steam coal is used by utilities to generate electricity, while metallurgical coal is used for either the coking process or in place of steam coal.
We continually meet our customers’ energy needs in a complex and challenging marketplace through our ability to blend coal from multiple reserves to ensure consistent, high-quality products.
Drummond Company controls reserves totaling more than two billion tons and today we ship over 30 million metric tons of coal annually to customers worldwide. We are proud to be identified as a significant producer of compliance coal, which meets the Phase II low-sulfur requirements of the 1990 Amendments to the Clean Air Act.
Drummond Company has been in the business of mining since our inception in 1935. Our mining operations are located in Colombia and serve customers in both the U.S. and abroad. Learn more about our operations by contacting us today.