South African Coal

Mgojo blames Exxaro’s 30% plunge in coal exports to “one of worst rail performances”

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By Brendan Ryan | Mining MX

EXXARO Resources churned profits and dividends in the six months to end-June but that was thanks to its non-managed iron ore investments because its core coal business was hammered by Transnet Freight Rail’s (TFR’s) disastrous performance on the coal export line to Richard’s Bay.

Coal export sales plunged 30% to 4.1 million tons (Mt) in the six months to end-June (six months to end-June 2020: 5.9Mt). That’s worse than was predicted in March by Exxaro CEO-elect Nombasa Tsengwa who warned that some two million tons of coal exports were “at risk” for all of 2021 because of TFR’s poor performance.

Tsengwa today told Miningmx that the “at risk” figure on Exxaro’s forecast coal exports for 2021 had been increased to three million tons…Full Story

South African coal price surge, while others languish, is troubling

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By Clyde Russell | Reuters

LAUNCESTON, Australia, Dec 5 (Reuters) – Coal prices around the world are gently sliding as demand from top importers such as China, India and even Europe remains subdued amid a so far mild northern winter. However, there is one exception.

South African coal export prices at Richards Bay have surged in recent months, defying market fundamentals and seemingly without logical explanation.

The daily Richards Bay index, as assessed by commodity price reporting agency Argus, jumped 44% from $56.54 a tonne on Sept. 25 to a recent high of $81.30 on Nov. 28.

It has since retreated slightly to end on Wednesday at $81.30 a tonne, but the Richards Bay outperformance over other benchmarks has been staggering.

The price of thermal coal delivered into northwest Europe dropped 16% from a recent high of $64.07 a tonne on Sept. 16 to the close on Wednesday of $54.04.

The weekly index for benchmark Australian thermal coal at Newcastle port has traded sideways in recent months, going from $63.22 a tonne in the week to Sept. 27 to $65.31 in the week to Nov. 29…Full Story