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By: BankTrack
Created before Nov 2016
Last update: 2018-11-05 16:59:33

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Sector Coal Mining
Headquarters
Ownership

The company was founded in 1935 by Heman Drummond and has been privately owned ever since by the Drummond family. The company is ranked at #189 on the Forbes list of America's largest private companies.

Subsidiaries
Drummond Ltd. Colombia – Colombia
Website http://www.drummondco.com

About Drummond

Drummond Company Inc. is a coal mining company based in Birmingham, Alabama, United States, with operations in Alabama and in La Loma, Colombia. It controls coal reserves totaling over two billion tons. Drummond primarily produces low sulfur or compliance coal. According to a Forbes report, Drummond earned revenues of USD2.4 billion in 2014, while employing 6,000 people.

Drummond produces coal and coal-based derivatives. It offers metallurgical coal. The company also provides petroleum based products for mining operations, such as diesel and refined gasoline products; petroleum-based products ranging from lubricants and oils to hydraulics, and on-road and off-road fuels; and fleet fueling, on site delivery, lubrication surveys, oil analysis, and waste oil collection services. In addition, it distributes mining, foundry, construction, and industrial supplies. Further, the company engages in the real estate development of land and master planned communities. It serves its customers in the United States and internationally.

Finance for Drummond was the subject of a Human Rights Impact Briefing by BankTrack. published in May 2016.

Latest developments

Colombia investigating Drummond’s possible involvement in union leaders' deaths

2018-10-30 00:00:00

OECD Guidelines complaint against American coal mining company Drummond

2016-07-19 00:00:00

Impacts

Social and human rights impacts

Allegations of links to paramilitary groups The Dutch peace movement PAX begun researching the experiences of victims of violence in the Cesar mining region of Colombia in 2011, and published its research findings in a June 2014 report called The Dark Side of Coal: Paramilitary Violence in the Mining Region of Cesar'. In September 2016 PAX published a new report on paramilitary violence in the Cesar mining region.

The report describes how, from 1996 onwards, paramilitaries from the United Self-Defence Forces of Colombia (AUC) started operating in the vicinity of Drummond and Prodeco mining concessions and along Drummond's railway line in Cesar. The AUC created a new front in this area, the Juan Andrés Álvarez Front, which quickly grew to 600 members. The fear and terror this front spread among the local population was horrific: on the basis of national police figures, it is conservatively estimated that between 1996 and 2006 this front drove over 55,000 farmers from their land, committed at least 2,600 selective killings, murdered an estimated 500 people in massacres, and ‘disappeared' more than 240 people.

Testimonies, made under oath in legal proceedings by ex-paramilitary leaders and Drummond's ex-contractors and supplemented with detailed interviews conducted later by PAX, indicate that the mining companies Drummond and Prodeco supported the paramilitaries in several ways.

These witnesses state:

  • that Drummond requested the establishment of Juan Andrés Álvarez Front, specifically to defend the company's mine and railway operations;
  • that both mining companies supported the paramilitaries financially and materially. A Drummond contractor who has been convicted for this support has handed over his entire administration, disclosing what according to him shows the financial ties between Drummond and the paramilitaries;
  • that the mining companies cooperated with the paramilitaries by sharing intelligence and discussing the general paramilitary strategy in the mining region with AUC commanders.

Drummond has denied the allegations that were made against them, and a summary of its response is given in the Dark Side of Coal report. In March 2015 Drummond also filed a lawsuit against American and Colombian human rights lawyers (Colombia Reports, 2015).

In May 2015 a former executive of Drummond was interrogated over his alleged involvement with the murder of two trade unionists, after former paramilitaries claimed they were financed by Drummond and coordinated the murders with the company. This case is now to be decided by Colombia’s Courts of Justice. It followed from the conviction of a former contractor for Drummond in February 2013, who was sentenced by a Colombian court to 38 years in prison for organizing the killing of two labour leaders in 2001 BHRRC, accessed May 2016.

Benefitting from paramilitary violence In addition to the evidence of these testimonies, it is clear that Drummond has, in various ways, benefited from the human rights abuses committed by the AUC, and that they continue to do so to this day. For example: forced displacement of communities carried out by the Juan Andrés Álvarez Front has cleared the path for land to be sold to Drummond for the expansion of its mining projects (detailed in Chapter 7 of the Dark Side of Coal report). In addition, the violence and threats by the paramilitaries against trade union leaders and civil society organisations has weakened and curtailed the activities of these groups.

Labour standards In June 2015 Drummond and Prodeco together fired a total of 26 leaders of the regional section of the largest independent labour union in Cesar, Sintraminergetica. This move has hugely damaged the already weakened independent labour movement. The companies argue that they were involved in a strike in 2012 that was declared illegal (PAX, 2015).

Environmental and climate impacts

"For several years, farmers and residents of the mines have been complaining about the enormous impacts that arise in the course of coal mining. The dangerous dust clouds that result from blasting the coal out of the ground, affect the health of local residents. A study in 2011 showed that 50% of the Colombian population suffer from diseases of the respiratory tract due to the strong emissions from the industry. (Deutschlandfunk)

Every day approximately 160,000 tons of coal are transported from the mines to the Caribbean coast. The rail cars are not covered during transport, resulting in the coal dust being distributed through the entire region, including coal dust and dirt entering rivers and fields. Even the rain water is deep black and cannot be used as drinking water, nor to irrigate the land. According to media reports, the river Paraluz was polluted by the derailment of a number of rail cars carrying coal belonging to the company Prodeco in April 2014. (Deutsche Welle)

The carbon storage at the ports is no less dangerous for the residents. The coal dust blows from these ports deep into the country and affects humans, animals and agricultural production. In addition, when coal is loaded onto cargo ships further dust is blown off resulting in serious pollution of the sea.(Deutsche Welle) At the end of 2013 the Drummond Group of companies were convicted and sentenced to a fine of 6.965 million pesos (3.58 million U.S. dollars) due to contamination of the Bay of Santa Marta. This contamination occurred in January 2012 when a barge on the point of sinking offloaded several tons of coal in the main tourist area of Santa Maria.(Hispanically Speaking News) This progressive destruction and endangerment of the marine ecosystem leads to a significant decline in fish stocks, impacting the livelihood of many fisherman who depend on the local area."  Facing Finance, 2014.

Governance

Timeline

Colombia investigating Drummond’s possible involvement in union leaders' deaths

2018-10-30 00:00:00

Colombian authorities have reopened an investigation into whether Drummond financed a paramilitary group. Eight Drummond executives will be interrogated about unusually high payments made to a contractor, Jose Blanco, who was convicted in 2013 in the killing of two union leaders who worked at Drummond and sentenced to 38 years in prison. (source: www.al.com)
 

 

OECD Guidelines complaint against American coal mining company Drummond

2016-07-19 00:00:00

Two Colombian trade unions (CGT and SINTRADEM) have filed an OECD Guidelines complaint against American coal mining company Drummond for labour rights abuses (related to the issues of freedom of association and health & safety) at Drummond's coal mine in Colombia. The complaint is the first ever filed with the Colombian National Contact Point (NCP) for the OECD Guidelines. A number of European power companies - RWE/Essent, Vattenfall/Nuon, E.ON, Engie/GDF Suez, Enel, STEAG, EDF, EnWB - are mentioned in the complaint given that they are major purchasers of coal from Drummond's Colombian operations (source Confederacion General del Trabajo Colombia).

Drummond forecasts 35 million tons of coal exports in 2016

2015-12-05 00:00:00

U.S.-based coal producer Drummond said it expected its coal exports for 2016 to rise to between 34-35 million tons, up from a projected total of 28 million tons in 2015. "We expect to have export levels at 35 million tons, with a production level that may be close to that," Drummond's top executive in Colombia, Jose Miguel Linares, told reporters (source: www.efe.com).

Financiers

News

| |
Type:
Year:
blog
external news
our news

Banks failing to address severe human rights impacts transparently, finds BankTrack research

Findings reinforce the need for regulators to ensure access to effective remedy for people affected by bank finance
2021-12-14 | Nijmegen | BankTrack
blog
external news
our news

HSBC dusts down its mining policy, but leaves room for more coal financing

2016-12-07 | Yann Louvel – BankTrack
blog
external news
our news

New Report: Blood coal still linked to murder

2016-09-15 | Pax
blog
external news
our news

Drummond under criminal investigation

2016-09-02 | Pax
blog
external news
our news

Drummond Company, Inc. appoints new CEO and new Chairman of the Board

2016-07-21 | Drummond press release
blog
external news
our news

Drummond Company, Inc. Chief Executive Officer Garry Neil Drummond Dies At 78

2016-07-13 | Drummond
blog
external news
our news

New BankTrack Human Rights Impact Briefing: Drummond and paramilitary violence in Colombia

2016-05-25 | Nijmegen | BankTrack
blog
external news
our news

Stuart Gulliver ‘has blood on his hands’ as HSBC AGM shines light on human rights abuses

2016-04-22 | London | Move Your Money UK
blog
external news
our news
private

On Coal and Capital: Demand that HSBC Quit Coal

Link expired
2016-03-15 | Move Your Money UK
blog
external news
our news

Nova Scotia Power's coal is "drenched in blood"

2015-12-03 | Halifax's website The Coast
blog
external news
our news

Drummond says it will not renew controversial coal mining permit for Shepherd Bend

2015-06-19 | Alabama AL.com
blog
external news
our news

Colombia court further restricts use of main coal railway

2015-06-02 | Reuters
blog
external news
our news

Drummond executive arrested over paramilitary murder charges

2015-05-26 | Colombia Reports
blog
external news
our news

Why Drummond and Glencore are accused of exporting Colombian blood coal

2014-07-02 | Colombia Reports
blog
external news
our news

“Your money is being used to fund violence and abuse of the rights of our people”

2014-05-18 | RAN
blog
external news
our news

Shareholders Press Bank of America for Coal and Climate Finance

Rainforest Action Network, Investors and Community Leaders Take Stage at ‘Bank of Coal’ Meeting
2014-05-08 | Charlotte, North Carolina, United States | Rainforest Action Network
blog
external news
our news

Drummond Barge Wrecked In Colombia; Diesel Spilt

2014-04-13 | The Maritime Executive
blog
external news
our news

US miner Drummond restarts coal loadings at Colombian export terminal

2014-04-01 | Platts
blog
external news
our news

Coal giant's operations not a blast for locals

2014-03-02 | Business Day Live
blog
external news
our news

Africa: EU Commission Should Heed Parliament's Call for Strong EU Regulation On Conflict Resources, Campaigners Say

2014-02-27 | All Africa
blog
external news
our news

Colombia to charge employees of US coal company Drummond

2014-02-01 | BBC
blog
external news
our news

Whistle-Blower Behind Coal Rally Heralds Colombian Shift

2014-01-22 | Bloomberg
blog
external news
our news

Why Colombia halted a US company's coal exports

2014-01-20 | Global Post
blog
external news
our news

Colombia Bans Coal Loading by 2nd-Biggest Producer Drummond

2014-01-09 | Bloomberg Businessweek
blog
external news
our news

UPDATE 2-Colombia halts coal loading by Drummond, disrupting exports

2014-01-09 | Reuters
blog
external news
our news

Colombian Coal Union Says Work Has Resumed at Drummond

2013-09-15 | The Wall Street Journal

Documents

Type:
Year:
our publications
2021-12-14 00:00:00

Actions speak louder: Assessing bank responses to human rights violations

2021-12-14 00:00:00 | BankTrack
ngo documents
2018-02-28 00:00:00

How banks contribute to human rights violations: responses to the Business & Human Rights Resource Centre

2018-02-28 00:00:00 | Business & Human Rights Resource Centre
our publications
2017-12-08 00:00:00

How banks contribute to human rights violations

BankTrack Human Rights Briefing Paper
2017-12-08 00:00:00 | BankTrack
ngo documents
2016-09-30 00:00:00

Civil society under threat

Paramilitary violence in the Cesar mining region 2012-2016
2016-09-30 00:00:00 | PAX
other documents
2016-07-19 00:00:00

Ante el punto nacional de contacto de la OCDE, demandada la multinacional del carbon Drummond por violaciones a los derechos humanos, laborales y de salud de sus trabajadores.

2016-07-19 00:00:00 | Confederacion General del Trabajo Colombia
other documents
2016-07-19 00:00:00

Ante el punto nacional de contacto de la OCDE, demandada la multinacional del carbon Drummond por violaciones a los derechos humanos, laborales y de salud de sus trabajadores.

2016-07-19 00:00:00 | Confederacion General del Trabajo Colombia
our publications
2016-05-25 00:00:00

Human Rights Impact Briefing #2: Drummond and paramilitary violence in Colombia

2016-05-25 00:00:00 | BankTrack
correspondence
2016-04-15 00:00:00

Letter from Citigroup to BankTrack on Drummond Human Rights Impact Briefing

2016-04-15 00:00:00 | Citigroup
correspondence
2016-04-13 00:00:00

Letter from HSBC to BankTrack on Drummond Human Rights Impact Briefing

2016-04-13 00:00:00 | HSBC
correspondence
2016-04-08 00:00:00

Letter from Mizuho to BankTrack on Drummond Human Rights Impact Briefing

2016-04-08 00:00:00 | Mizuho
annual reports
2015-10-28 00:00:00

Drummond 2013-2014 sustainability report

2015-10-28 00:00:00
company documents
2014-07-01 00:00:00

Response to PAX-report

2014-07-01 00:00:00 | Drummond
ngo documents
2014-06-01 00:00:00

The Dark Side of Coal

Paramilitary Violence in the Mining Region of Cesar, Colombia
2014-06-01 00:00:00 | PAX

Links

Rafael Arturo Mendez Barbosa & Maira Marleny Mendez (brother & sister)

Testimony of the children of Cándido Méndez, a union leader who was shot dead in 2002.
http://www.paxforpeace.nl/stay-informed/in-depth/stop-blood-coal/stories/rafael-arturo-mendez-barbosa-maira-marleny-mendez-brother-sister

Profile Drummond

by Sourcewatch
http://www.sourcewatch.org/index.php/Drummond
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