EURO COAL-Unblocking of Colombian exports pulls down prices

LONDON, Jan 6 (Reuters) - European physical coal prices fell further on Monday as traders grew more confident that U.S.-based miner Drummond will continue exporting from Colombia, an important source of supply for Europe.

The price of coal for delivery in January into Europe's main terminals in Amsterdam, Rotterdam and Antwerp (ARA) fell to $79.75 a tonne, down $3.75 from Dec. 20 when it traded at $83.75 a tonne.

Coal for February delivery traded at $80.80 a tonne.

The losses reflect rising confidence that exports from Colombia will continue unimpeded despite the introduction of new laws that threatened temporarily to suspend output.

Prices have proved volatile in recent days as the local environmental agency in Magdalena province, where Drummond's port is located, ordered the company on Friday to suspend loading of coal onto ships until it met a new law requiring the use of a conveyor belt instead of cranes.

This stoked limited coal price gains until a government official clarified on Monday that local decisions are not yet applicable, clearing Drummond to continue exporting although it must pay fines, and pulling prices back down.

Drummond, Colombia's second-biggest miner of coal, expects to complete construction of its conveyor belt loader by March. The enclosed conveyor belt pours coal directly into ships' holds, a cleaner method than using cranes, which cause dust and lumps of coal to fall into the sea.

January South African cargoes from its Richards Bay export terminal were trading at $84.60 a tonne on Monday, 85 cents lower compared with Dec. 20.

(Reporting by Oleg Vukmanovic; Editing by Anthony Barker)

((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters Messaging: oleg.vukmanovic.thomsonreuters.com@reuters.net))

Keywords: MARKETS COAL/PHYSICAL