UPDATE 1-Drummond, Colombia workers to resume strike talks-union
* Workers strike over pay, port workers
* Long strike could have an impact on prices in Europe
* Coal strike could slow economic growth
(Adds details on strike, byline)
BOGOTA, Aug 6 (Reuters) - U.S. coal miner Drummond Co Inc and striking workers in Colombia will resume talks on Tuesday to try to end a work stoppage that stalled about one-third of the output in the Andean nation, the union said.
Drummond, which has two mines and a port in Colombia, will try to reach a deal with the Sintramienergetica union, which represents about half of Drummond's roughly 10,000 workers, to lift the strike that began on July 23 after weeks of pay talks ended in failure.
"We have all the will to make a deal but it depends on the company," Edgar Munoz, vice president of Sintramienergetica, told Reuters. The talks will begin at 10 a.m. local time (1500 GMT), Munoz said.
Stocks at Drummond's own port were unable to be shipped, forcing the company to call force majeure on some cargoes since workers there were part of the strike action. Force majeure allows the suspension of contractual obligations due to unexpected events such as strikes.
The seaborne coal market is well supplied, but if the strike was to drag on for months it could reduce the surplus and push up prices in Europe, where much of Colombia's supply is consumed and buyers are already booking in fuel for the winter.
Drummond produced 26 million tonnes of coal, or almost one-third of the Colombia's total output in 2012. Coal is one of the Andean nation's biggest exports.
Though Colombian output is small compared with the United States and China, it is a major player in the seaborne, or coal export trade, since those countries consume much of their own production for electricity.
The workers' union had demanded a 9 percent pay increase with smaller inflation-linked increments in subsequent years. Drummond had offered 4.75 percent for the first year plus a one-time bonus of about $3,700.
A major point of contention for the union is the fate of 400 port workers, some of whom could be laid off when conveyor belt loading begins at Drummond's port early next year. The union has demanded all those workers be offered alternative positions while the company had promised to retain 70 percent.
Colombia's coal industry has had a turbulent year with a month-long strike at rival miner Cerrejon in February and a temporary closure of Drummond's port after an environmental incident in February.
Those events were a major factor behind slower economic growth in the first quarter of this year.
The government has also struggled to bring an end to a strike by artisanal and small-scale miners over the past month, some of whom blocked roads, demanding provisions be made for them within the country's mining code.
Drummond had been expected to produce 32 million tonnes out of some 94 million tonnes of forecast national output in 2013, which would earn the nation about 900 billion pesos ($475.7 million) in royalties, the government has said, up from 700 billion pesos last year.
(Editing by Gerald E. McCormick and Maureen Bavdek)