Wed Jun 22, 2011
JOHANNESBURG, June 22 (Reuters) - Junior coal miners in South Africa should focus on supplying the domestic market as access to lucrative exports is likely to remain constrained for some time to come, an industry official said on Wednesday.
Coal miners in South Africa have been unable to export all their coal due to infrastructure bottlenecks at the ports and especially rail lines linking mines with the export terminals.
Andre Boje, chief executive officer of junior miner Wescoal Holdings Ltd , said there was sufficient demand in the domestic market, ranging from the electricity sector to other industries such as chemicals and cement manufacturing.
"The country needs coal. Accessing the export market for junior miners is very difficult and that is not going to change for the foreseeable future ... (but) there is life beyond the export market," he told the Coaltrans conference.
The main domestic users of coal are power utility Eskom, which relies on coal for almost all of its power generation, followed by petrochemicals group Sasol .
Boje said beyond Eskom and Sasol there was other domestic demand of up to 16 million tonnes per year on the back of the country's growing cement, iron ore, steel, paper and other industries. (Reporting by Yumna Mohamed,Editing by James Jukwey, Reuters)
JOHANNESBURG, June 22 (Reuters) - Junior coal miners in South Africa should focus on supplying the domestic market as access to lucrative exports is likely to remain constrained for some time to come, an industry official said on Wednesday.
Coal miners in South Africa have been unable to export all their coal due to infrastructure bottlenecks at the ports and especially rail lines linking mines with the export terminals.
Andre Boje, chief executive officer of junior miner Wescoal Holdings Ltd , said there was sufficient demand in the domestic market, ranging from the electricity sector to other industries such as chemicals and cement manufacturing.
"The country needs coal. Accessing the export market for junior miners is very difficult and that is not going to change for the foreseeable future ... (but) there is life beyond the export market," he told the Coaltrans conference.
The main domestic users of coal are power utility Eskom, which relies on coal for almost all of its power generation, followed by petrochemicals group Sasol .
Boje said beyond Eskom and Sasol there was other domestic demand of up to 16 million tonnes per year on the back of the country's growing cement, iron ore, steel, paper and other industries. (Reporting by Yumna Mohamed,Editing by James Jukwey, Reuters)
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