Wednesday, 27 Jul 2011
Reuters reported that a strike by South African coal workers at major mining houses will start to hit exports in two to four weeks, after stockpiles are used up at the mines and Richards Bay Coal Terminal.
Coal prices twitched slightly higher by around 50 US cents to USD 115 a tonne in anticipation of the strike and by another 50 cents. Until exports are cut, prices are unlikely to show much reaction.
During the past several years, strikes in the coal industry have been rare and fairly short-lived. But industry sources said this strike appeared to be different because the unions seemed determined to hold out for a pay rise nearly doubles the mining firms' offer.
One senior mining official said that "I don't think this is going to be over in a few days. It looks like it's going to drag on."
Another mining source said that "Everybody I've talked to has the view that this one is unique and the negotiations have not been pretty."
It may be recalled that around 150,000 miners represented by the National Union of Mineworkers and Solidarity at Anglo Thermal Coal SA, Xstrata Coal, Exxaro, BHP Billiton and Optimum Coal went on strike in pursuit of a pay rise of up to 14%.
The big miners affected, which account for around 50% of RBCT's coal exports, said that they were just as concerned about potential power shortages due to reduced domestic coal supply as they were about the strike's duration, because power cuts would hit output.
Utility Eskom has about 38 days of coal in stockpiles on average, but the levels vary at different power plants. Smaller coal miners still in wage talks said they were worried out power cuts but also feared a worsening shortage of explosives needed for mining and that sympathy strikes could spread.
The Chamber of Mines, is negotiating on behalf of the big miners which aligned their pay and benefits packages several years ago, has offered 8.5%.
South Africa, which is likely to export around 60 million tonnes of thermal coal in 2011, is one of the world's top five exporters and a major supplier to Europe and increasingly Asia.
Mr Xavier Prevost, a Johannesburg based independent coal analyst, said that "If it's a few days or a week, it shouldn't be too bad, but if it's longer than that. If we don't produce coal, the first to be affected will be exports."
A source at one of South Africa's biggest exporters whose workers are on strike said that "There's a bit of fat in the system. Most people have reasonable stocks at the mines and at Richards Bay, but one of the other big players doesn't have so much."
He added that "The key thing is the railings, and Transnet is moving 1.4 million tonnes a week to the Bay, so you'll quickly see who's most affected because they'll soon be canceling trains because they don't have the output to move."
(sourced from Reuters)
South Africa coal miners start strike
Why Coal Prices Will Soar in the Coming Years
Lontoh Coal Limited of South Africa has planned to open up China’s market
Coal prices area at US$ 120 a tonne
Mozambi Coal to acquire Mozambican coal concession
South African Premier Bulk Port - Port of Richards Bay
Newcastle steam coal price rises by 1pct
S.Africa's June coal exports rise to 4.78 mln T
Coal of Africa shares up almost 20%
Reuters reported that a strike by South African coal workers at major mining houses will start to hit exports in two to four weeks, after stockpiles are used up at the mines and Richards Bay Coal Terminal.
Coal prices twitched slightly higher by around 50 US cents to USD 115 a tonne in anticipation of the strike and by another 50 cents. Until exports are cut, prices are unlikely to show much reaction.
During the past several years, strikes in the coal industry have been rare and fairly short-lived. But industry sources said this strike appeared to be different because the unions seemed determined to hold out for a pay rise nearly doubles the mining firms' offer.
One senior mining official said that "I don't think this is going to be over in a few days. It looks like it's going to drag on."
Another mining source said that "Everybody I've talked to has the view that this one is unique and the negotiations have not been pretty."
It may be recalled that around 150,000 miners represented by the National Union of Mineworkers and Solidarity at Anglo Thermal Coal SA, Xstrata Coal, Exxaro, BHP Billiton and Optimum Coal went on strike in pursuit of a pay rise of up to 14%.
The big miners affected, which account for around 50% of RBCT's coal exports, said that they were just as concerned about potential power shortages due to reduced domestic coal supply as they were about the strike's duration, because power cuts would hit output.
Utility Eskom has about 38 days of coal in stockpiles on average, but the levels vary at different power plants. Smaller coal miners still in wage talks said they were worried out power cuts but also feared a worsening shortage of explosives needed for mining and that sympathy strikes could spread.
The Chamber of Mines, is negotiating on behalf of the big miners which aligned their pay and benefits packages several years ago, has offered 8.5%.
South Africa, which is likely to export around 60 million tonnes of thermal coal in 2011, is one of the world's top five exporters and a major supplier to Europe and increasingly Asia.
Mr Xavier Prevost, a Johannesburg based independent coal analyst, said that "If it's a few days or a week, it shouldn't be too bad, but if it's longer than that. If we don't produce coal, the first to be affected will be exports."
A source at one of South Africa's biggest exporters whose workers are on strike said that "There's a bit of fat in the system. Most people have reasonable stocks at the mines and at Richards Bay, but one of the other big players doesn't have so much."
He added that "The key thing is the railings, and Transnet is moving 1.4 million tonnes a week to the Bay, so you'll quickly see who's most affected because they'll soon be canceling trains because they don't have the output to move."
(sourced from Reuters)
South Africa coal miners start strike
Why Coal Prices Will Soar in the Coming Years
Lontoh Coal Limited of South Africa has planned to open up China’s market
Coal prices area at US$ 120 a tonne
Mozambi Coal to acquire Mozambican coal concession
South African Premier Bulk Port - Port of Richards Bay
Newcastle steam coal price rises by 1pct
S.Africa's June coal exports rise to 4.78 mln T
Coal of Africa shares up almost 20%
Posts
No comments:
Post a Comment