For the benefit of the Company’s area of influence and the country, two mining contracts from Drummond Ltd. were integrated into one

Valledupar, June 11, 2021

The National Mining Agency (ANM) and Drummond Ltd. signed the integration of two of their medium-sized coal mining contracts (# 284-95 and # 283-95), previously known as Rincon Hondo and Similoa, into a single large scale mining project called “El Corozo”. This unified project, located in the municipalities of La Jagua de Ibirico and Chiriguaná (Cesar), will have an estimated maximum annual production of around 3.5 million tons / year.

The integration of these contracts included a social investment clause for the communities of La Jagua de Ibirico and Chiriguaná (Cesar) and Ciénaga (Magdalena), in projects that will contribute to the reduction of poverty (SDG # 1) and the improvement of the quality of life of its inhabitants.

Likewise, the ANM and Drummond agreed to an additional payment in high coal price scenarios, thus increasing the Nation’s income. The potential increase in coal production, with the integration of the contracts, will also increase the Nation’s income from royalties and compensations.

“This is good news for Drummond, for its more than 5,000 direct employees, more than 5,000 contractor workers, for Cesar, Magdalena and, in general, for the country. After having a difficult year in 2020, due to the international conditions of the coal market and the pandemic, with the operation of this new area, the company expects to maintain current levels of employment, as well as its purchases of supplies, in addition to production and long-term coal exports, ”said José Miguel Linares, president of Drummond Ltd.

Cesar’s human talent

Although Drummond’s mining operations are in a mature stage, where staff turnover is low, we would like to highlight a few numbers:

Currently, 2,721 employees, which corresponds to 65% of the total number of workers in mining operations, were born in the Department of Cesar, and of those, 1,550 (57%) were born in mining municipalities as follows:

  • Agustín Codazzi – 15%
  • Becerril – 8%
  • Chiriguaná – 13%
  • El Paso / La Loma – 11%
  • La Jagua de Ibirico – 10%

Regarding the place of residence, 3,071 employees, which corresponds to 74% of the total employees of mining operations, reside in the Department of Cesar, and of those, 1,370 (45%) live in the mining municipalities as follows:

• Agustín Codazzi – 7%

• Becerril – 7%

• Chiriguaná – 7%

• El Paso / La Loma – 11%

• La Jagua de Ibirico – 13%

On the other hand, we have 1,462 workers from contractor companies, equivalent to 30%, who are from the mining municipalities. With other Cesar municipalities, the percentage rises to 59%.

Additionally, in 2020 we had 24 suppliers of goods and services from the mining municipalities, with a turnover of $ 38,595 million pesos.