Tuesday, 13 Mar 2012
Bloomberg reported that coal export prices at South Africa Richards Bay, the continent biggest terminal for shipping the fuel fell to their lowest level in three months.
According to IHS McCloskey data on Bloomberg prices declined 50 cents or 0.5% to USD 103.85 per tonne in the week ended March 9, the least since December 16.
The price is quoted on a free-on-board basis, which excludes delivery costs.
Source - Bloomberg
Showing posts with label Richards Bay Coal Terminal. Show all posts
Showing posts with label Richards Bay Coal Terminal. Show all posts
Tuesday, March 13, 2012
Tuesday, February 7, 2012
Mozambique's Maputo hot spot for South African coal
Tuesday, 07 Feb 2012
Mozambique capital Maputo is hotting up as a magnet for companies aspiring to be significant South African coal exporters, following a Vitol joint venture deal.
Industry sources said that the port has been used on a small scale for coal exports which shippers were unable to move from the main export hub, Richards Bay Coal Terminal but is now the centre of major expansion plans for South African coal.
A recent visitor to the port said that two exporters have in the last few months started using the main Maputo harbour, which has no loading equipment, for the first time and gleaming new fencing has been set up around stockpiles there.
A handful of mining majors own RBCT, by far the cheapest, most efficient port, but new entrants have mostly failed to gain a foothold there.
An executive involved in South African projects said that "If you want to be producing South African coal for export, don't ever think you are going to get into Richards Bay Maputo is really the only option.”
Would be entrants already see Glencore well established. At Maputo it accounts for a third of the 3 million tonnes a year of exports and is also using the main harbour which has no loading equipment.
This deadlock has been frustrating for rival, large trading firms wanting to catch up with Glencore's roughly 20 year head start in building an integrated global coal business including investments in mines and ports and myriad offtake agreements.
(Sourced from Thomson Reuters)
Mozambique capital Maputo is hotting up as a magnet for companies aspiring to be significant South African coal exporters, following a Vitol joint venture deal.
Industry sources said that the port has been used on a small scale for coal exports which shippers were unable to move from the main export hub, Richards Bay Coal Terminal but is now the centre of major expansion plans for South African coal.
A recent visitor to the port said that two exporters have in the last few months started using the main Maputo harbour, which has no loading equipment, for the first time and gleaming new fencing has been set up around stockpiles there.
A handful of mining majors own RBCT, by far the cheapest, most efficient port, but new entrants have mostly failed to gain a foothold there.
An executive involved in South African projects said that "If you want to be producing South African coal for export, don't ever think you are going to get into Richards Bay Maputo is really the only option.”
Would be entrants already see Glencore well established. At Maputo it accounts for a third of the 3 million tonnes a year of exports and is also using the main harbour which has no loading equipment.
This deadlock has been frustrating for rival, large trading firms wanting to catch up with Glencore's roughly 20 year head start in building an integrated global coal business including investments in mines and ports and myriad offtake agreements.
(Sourced from Thomson Reuters)
Monday, January 30, 2012
South African Coal Export Prices Rise to Highest Since November
Mon, Jan 30, 2012
Coal export prices at South Africa’s Richards Bay, the continent’s biggest terminal for shipping the fuel, advanced to the highest level in nearly three months.
Prices (CLSPSARB) rose $3.26, or 3.1 percent, to an average $107.17 a metric ton in the week ended Jan. 27, according to data on Bloomberg from IHS McCloskey. That’s the steepest increase since Dec. 23 and the highest level since Nov. 4.
The price is quoted on a free-on-board basis, which excludes delivery costs.
(sourced Bloomberg)
Coal export prices at South Africa’s Richards Bay, the continent’s biggest terminal for shipping the fuel, advanced to the highest level in nearly three months.
Prices (CLSPSARB) rose $3.26, or 3.1 percent, to an average $107.17 a metric ton in the week ended Jan. 27, according to data on Bloomberg from IHS McCloskey. That’s the steepest increase since Dec. 23 and the highest level since Nov. 4.
The price is quoted on a free-on-board basis, which excludes delivery costs.
(sourced Bloomberg)
Tuesday, January 17, 2012
South African coal export prices decline most in four Weeks
Tuesday, 17 Jan 2012
Bloomberg reported that coal export prices at South Africa Richards Bay the continent biggest terminal for shipping the fuel declined the most in four weeks.
According to data on Bloomberg from IHS McCloskey prices fell 76 cents or 0.7% to an average USD 105.89 per tonne in the week ended January 13. That’s the steepest decrease since December 16. The price is quoted on a free-on-board basis, which excludes delivery costs.
(Sourced from Bloomberg)
Bloomberg reported that coal export prices at South Africa Richards Bay the continent biggest terminal for shipping the fuel declined the most in four weeks.
According to data on Bloomberg from IHS McCloskey prices fell 76 cents or 0.7% to an average USD 105.89 per tonne in the week ended January 13. That’s the steepest decrease since December 16. The price is quoted on a free-on-board basis, which excludes delivery costs.
(Sourced from Bloomberg)
Tuesday, January 10, 2012
S.Africa 2011 Richards Bay coal exports rise 3.3%
Tue, Jan10, 2012
JOHANNESBURG (Reuters) - South Africa's coal exports from the Richards Bay terminal rose 3.3 percent to 65.5 million tonnes in 2011, the terminal's data showed on Monday, as improvements on the rail lines leading to the port started to pay off.
State-owned logistics group Transnet has been investing heavily to upgrade its lines and to invest in new wagons and locomotives, but export figures are still far below the coal terminal's expanded capacity of 91 million tonnes.
Coal producers in South Africa including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata have been eager to export more coal to meet rising demand from India and China but have been limited by bottlenecks on the lines leading to the port.
Last week, South Africa's coal exporters provided a slightly lower 2011 export estimate of 64.6 million tonnes, a rise of 1.9 percent.
Transnet has said it will take until at least 2015 to be able to carry 81 million tonnes to the Richards Bay Coal Terminal (RBCT) each year.
The group also plans to free up an additional 14 million tonnes of capacity on the coal line by moving non-coal cargo to a new line via Swaziland.
Coal producers have begun to look beyond South Africa and explore export routes via Mozambique and Namibia, although the rail links or expansion at the relevant ports are still in the planning stage or would involve higher costs.
Coal stocks at the terminal stood at 3.3 million tonnes at the end of December, RBCT added.
(sourced Reuters)
JOHANNESBURG (Reuters) - South Africa's coal exports from the Richards Bay terminal rose 3.3 percent to 65.5 million tonnes in 2011, the terminal's data showed on Monday, as improvements on the rail lines leading to the port started to pay off.
State-owned logistics group Transnet has been investing heavily to upgrade its lines and to invest in new wagons and locomotives, but export figures are still far below the coal terminal's expanded capacity of 91 million tonnes.
Coal producers in South Africa including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata have been eager to export more coal to meet rising demand from India and China but have been limited by bottlenecks on the lines leading to the port.
Last week, South Africa's coal exporters provided a slightly lower 2011 export estimate of 64.6 million tonnes, a rise of 1.9 percent.
Transnet has said it will take until at least 2015 to be able to carry 81 million tonnes to the Richards Bay Coal Terminal (RBCT) each year.
The group also plans to free up an additional 14 million tonnes of capacity on the coal line by moving non-coal cargo to a new line via Swaziland.
Coal producers have begun to look beyond South Africa and explore export routes via Mozambique and Namibia, although the rail links or expansion at the relevant ports are still in the planning stage or would involve higher costs.
Coal stocks at the terminal stood at 3.3 million tonnes at the end of December, RBCT added.
(sourced Reuters)
Saturday, January 7, 2012
South African steam coal prices rise as buying picks up
Saturday, 07 Jan 2012
Reuters reported that South African physical prompt coal bids rose by around USD 1 per tonne recently as buyers began to emerge after the end year holiday hiatus.
Traders and utilities said delays of two weeks to Colombian coal shipments by Drummond and Prodeco, two of the country's biggest exporters, were a minor price-supporting factor which could turn into a more significant influence if the rains persist.
Drummond and Prodeco mines in the north of the country where rainfall has been heaviest are neighboring but Colombia's biggest exporter, Cerrejon is seeing delays of only 2-3 days on average and met its 2011 export target of 32 million tonnes.
One European utility source said "Drummond is seeing the worst delays of around two weeks, Prodeco almost as bad but even though Prodeco's coal is high-grade and some is specialist pulverised coal for steelmaking, it is important and it does matter to the market."
In the European DES ARA market a few more players were seeking February and March delivery cargoes but there was more interest in January loading South African cargoes.
Some Indian buyers enquired about Q1 cargoes FOB Richards Bay, partly concerned by indications from Indonesia that an export takes on low energy content coal will be imposed this year ahead of a proposed ban on low energy coal exports in 2014.
But traders also bid for and bought January Richards Bay cargoes, some to cover short positions, others because the very prompt market looked strong, although this could fizzle out quickly.
A European trader said "There are some shorts in the market looking for Colombian cargoes, very prompt Richards Bay, mostly traders rather than consumers."
(Sourced from Reuters)
Reuters reported that South African physical prompt coal bids rose by around USD 1 per tonne recently as buyers began to emerge after the end year holiday hiatus.
Traders and utilities said delays of two weeks to Colombian coal shipments by Drummond and Prodeco, two of the country's biggest exporters, were a minor price-supporting factor which could turn into a more significant influence if the rains persist.
Drummond and Prodeco mines in the north of the country where rainfall has been heaviest are neighboring but Colombia's biggest exporter, Cerrejon is seeing delays of only 2-3 days on average and met its 2011 export target of 32 million tonnes.
One European utility source said "Drummond is seeing the worst delays of around two weeks, Prodeco almost as bad but even though Prodeco's coal is high-grade and some is specialist pulverised coal for steelmaking, it is important and it does matter to the market."
In the European DES ARA market a few more players were seeking February and March delivery cargoes but there was more interest in January loading South African cargoes.
Some Indian buyers enquired about Q1 cargoes FOB Richards Bay, partly concerned by indications from Indonesia that an export takes on low energy content coal will be imposed this year ahead of a proposed ban on low energy coal exports in 2014.
But traders also bid for and bought January Richards Bay cargoes, some to cover short positions, others because the very prompt market looked strong, although this could fizzle out quickly.
A European trader said "There are some shorts in the market looking for Colombian cargoes, very prompt Richards Bay, mostly traders rather than consumers."
(Sourced from Reuters)
Monday, January 2, 2012
South Africa misses coal boom
Monday, 02 January 2012
South Africa's coal exports are surging into 2012 just when top spot buyers China and India are out of the market and supply bottlenecks elsewhere have eased, so it will have to fight for market share, eroding prices in a fundamentally weak landscape.
South Africa has the port capacity to export 81 million tonnes a year of coal from Richards Bay Coal Terminal, but in recent years the tonnage shipped has been far lower at about 64 million tonnes due to rail bottlenecks.
Exports in 2012 are forecast at around 70 million tonnes due to operator Transnet Freight Rail's (TFR's) improved railing rate, exporters and analysts said.
Even if TFR cannot sustain its target 1.6 million tonnes of coal a week moved to Richards Bay, after years of doubt and stinging criticism exporters expect rail rates to rise enough for an extra 7-10 million tonnes of exports.
"I think there's a lot of room for prices to come down - I wouldn't be surprised to see $85.00 a tonne FOB Richards Bay then rebounding back to $105 next year,” said Jaime Correal, analyst at Wood Mackenzie in Annapolis.
Exporters who have enjoyed fat margins on sales at over $100 against cash costs of about $60 are weighing up their likely profits on a higher volume sales at lower prices.
South Africa will export 21 million tonnes of coal in Q4, only slightly less than the 27 million shipped in the first half of the year, following a dramatic performance improvement by rail operator TFR.
Benchmark South African prices FOB Richards Bay have fallen from January’s highs of over $130.00 a tonne to about $100.00, on weakening fundamentals which will bite harder and push prices down in the coming year.
"Isn't it ironic that South Africa gets its act together on railings just as China withdraws from the market?," one major European trader said.
"It's the coal without any visible means of support because it isn't yet pricing in to any market in the world," he said.
This year began with a price spike and supply disruption due to floods in Australia's Queensland state and the Japanese tsunami. Indonesia and Colombia's output was hampered by severe rains and South Africa's exports seemed set for a shockingly low total of under 57 million tonnes.
"Last year almost every exporter had problems - but this year it's the reverse, nobody has a major problem exporting and South Africa is shipping at a totally unexpected rate," one major South African exporter said.
"It's bearish next year and the South African exporters are not in the best position to be trying to increase sales now," said Emmanuel Fages, an analyst with Societe Generale.
But some are unconvinced that TFR can keep up the pace.
"The performance of TFR has really improved lately but it's not clear if it will be sustainable or whether they'll start to have problems again," said Jaime Correal, coal analyst with Wood Mackenzie. "For this reason and because of strong domestic demand, we expect a slow growth in South African exports to 68 million tonnes maximum next year and slowly beyond that."
Retired drivers save the day
Among numerous TFR initiatives this year, the re-hiring of locomotive drivers had a dramatic impact on productivity, exporter, rail and transport sources said. "TFR re-employed 26 retired or semi-retired train drivers; their knowledge is very important, they know how to handle a train and can do their own minor repairs," one source said. These experienced drivers are able to drive new longer trains with many more jumbo wagons over some challenging parts of the line prone to derailments, and can save hours by avoiding the need to send out repair teams.
The move to a scheduled rail service, infra-red inspections of rail track (two potential derailments were averted that way) and raised security to prevent cable theft all played a part.
Rising quantities of American coal bought 1-2 years ago at discount prices are being shipped to Europe, increasing the pressure on South African sellers to shift sales to Asia.
India has been the biggest single buyer of South African coal since 2007, much of it now sold under term contracts but from next year India's biggest trade importers say they will buy spot only and will seek cheaper alternatives where possible.
"There's no doubt that some of the Indian buyers with index-linked term contracts have really suffered and will be more short-term buyers," another major exporter said.
India has been out of the spot market for several months and in the meantime, China absorbed the unwanted tonnes.
China is now the second-largest buyer of South African coal and absorbed about 9.5 million tonnes in January-October, roughly a fifth of the country's exports and a huge increase.
South Korea, which has reverted to buying standard grade coal, is also expected to buy more from South Africa.
"China and India, especially China, are such a huge price influence and the Chinese buyers like South African coal so as long as freight rates remain fairly low, it will still be competitive into China," the second exporter said.
Source: Reuters
South Africa's coal exports are surging into 2012 just when top spot buyers China and India are out of the market and supply bottlenecks elsewhere have eased, so it will have to fight for market share, eroding prices in a fundamentally weak landscape.
South Africa has the port capacity to export 81 million tonnes a year of coal from Richards Bay Coal Terminal, but in recent years the tonnage shipped has been far lower at about 64 million tonnes due to rail bottlenecks.
Exports in 2012 are forecast at around 70 million tonnes due to operator Transnet Freight Rail's (TFR's) improved railing rate, exporters and analysts said.
Even if TFR cannot sustain its target 1.6 million tonnes of coal a week moved to Richards Bay, after years of doubt and stinging criticism exporters expect rail rates to rise enough for an extra 7-10 million tonnes of exports.
"I think there's a lot of room for prices to come down - I wouldn't be surprised to see $85.00 a tonne FOB Richards Bay then rebounding back to $105 next year,” said Jaime Correal, analyst at Wood Mackenzie in Annapolis.
Exporters who have enjoyed fat margins on sales at over $100 against cash costs of about $60 are weighing up their likely profits on a higher volume sales at lower prices.
South Africa will export 21 million tonnes of coal in Q4, only slightly less than the 27 million shipped in the first half of the year, following a dramatic performance improvement by rail operator TFR.
Benchmark South African prices FOB Richards Bay have fallen from January’s highs of over $130.00 a tonne to about $100.00, on weakening fundamentals which will bite harder and push prices down in the coming year.
"Isn't it ironic that South Africa gets its act together on railings just as China withdraws from the market?," one major European trader said.
"It's the coal without any visible means of support because it isn't yet pricing in to any market in the world," he said.
This year began with a price spike and supply disruption due to floods in Australia's Queensland state and the Japanese tsunami. Indonesia and Colombia's output was hampered by severe rains and South Africa's exports seemed set for a shockingly low total of under 57 million tonnes.
"Last year almost every exporter had problems - but this year it's the reverse, nobody has a major problem exporting and South Africa is shipping at a totally unexpected rate," one major South African exporter said.
"It's bearish next year and the South African exporters are not in the best position to be trying to increase sales now," said Emmanuel Fages, an analyst with Societe Generale.
But some are unconvinced that TFR can keep up the pace.
"The performance of TFR has really improved lately but it's not clear if it will be sustainable or whether they'll start to have problems again," said Jaime Correal, coal analyst with Wood Mackenzie. "For this reason and because of strong domestic demand, we expect a slow growth in South African exports to 68 million tonnes maximum next year and slowly beyond that."
Retired drivers save the day
Among numerous TFR initiatives this year, the re-hiring of locomotive drivers had a dramatic impact on productivity, exporter, rail and transport sources said. "TFR re-employed 26 retired or semi-retired train drivers; their knowledge is very important, they know how to handle a train and can do their own minor repairs," one source said. These experienced drivers are able to drive new longer trains with many more jumbo wagons over some challenging parts of the line prone to derailments, and can save hours by avoiding the need to send out repair teams.
The move to a scheduled rail service, infra-red inspections of rail track (two potential derailments were averted that way) and raised security to prevent cable theft all played a part.
Rising quantities of American coal bought 1-2 years ago at discount prices are being shipped to Europe, increasing the pressure on South African sellers to shift sales to Asia.
India has been the biggest single buyer of South African coal since 2007, much of it now sold under term contracts but from next year India's biggest trade importers say they will buy spot only and will seek cheaper alternatives where possible.
"There's no doubt that some of the Indian buyers with index-linked term contracts have really suffered and will be more short-term buyers," another major exporter said.
India has been out of the spot market for several months and in the meantime, China absorbed the unwanted tonnes.
China is now the second-largest buyer of South African coal and absorbed about 9.5 million tonnes in January-October, roughly a fifth of the country's exports and a huge increase.
South Korea, which has reverted to buying standard grade coal, is also expected to buy more from South Africa.
"China and India, especially China, are such a huge price influence and the Chinese buyers like South African coal so as long as freight rates remain fairly low, it will still be competitive into China," the second exporter said.
Source: Reuters
Thursday, December 29, 2011
Steam coal market in low activity
Thursday, 29 Dec 2011
Reuters reported that physical prompt coal markets saw little activity in the first full day of trading after Christmas on Wednesday and in the absence of spot trades to give price direction, coal was largely tracking the oil, as it has for the past few months.
There was little coal trading activity on Wednesday as many traders were bridging the Christmas and New Year holidays.
No physical trades were heard, but February South African Richard's Bay cargoes saw a bid/offer range of USD 104.75 to USD 107.15 per tonne, and March cargoes saw a range of USD 105.50 to USD 108.
(Sourced from Reuters)
Reuters reported that physical prompt coal markets saw little activity in the first full day of trading after Christmas on Wednesday and in the absence of spot trades to give price direction, coal was largely tracking the oil, as it has for the past few months.
There was little coal trading activity on Wednesday as many traders were bridging the Christmas and New Year holidays.
No physical trades were heard, but February South African Richard's Bay cargoes saw a bid/offer range of USD 104.75 to USD 107.15 per tonne, and March cargoes saw a range of USD 105.50 to USD 108.
(Sourced from Reuters)
Saturday, December 10, 2011
Richards Bay Terminal BRR 3 billion upgrade
Saturday, 10 Dec 2011
Public Enterprises Minister Malusi Gigaba said that the government would invest R3 billion in the Richards Bay Terminal in the next five years.
The money would be invested in loading equipment, off-loading equipment, conveyor belts and other handling equipment. Mr Gigaba said that “An efficient port system enhances our national reputation… creating competition and choice for shippers.”
The terminal contains 21 berths for loading and off-loading ships.
Mr Gigaba said infrastructure roll-out was pivotal to stimulating the economy and creating employment. He added that “Infrastructure development is vital for industrialization… and it is vital for the establishment of social cohesion through facilitating shared growth and the sharing of wealth.”
The coal terminal section would also be expanded.
He added that “We intend expanding the coal export line to over 81 million tons per annum by 2016. This expansion will involve the migration of Eskom’s domestic coal from road to rail, the establishment of the Waterberg rail, port expansion and capacity allocation to junior miners.”
(sourced from www.iol.co.za)
Public Enterprises Minister Malusi Gigaba said that the government would invest R3 billion in the Richards Bay Terminal in the next five years.
The money would be invested in loading equipment, off-loading equipment, conveyor belts and other handling equipment. Mr Gigaba said that “An efficient port system enhances our national reputation… creating competition and choice for shippers.”
The terminal contains 21 berths for loading and off-loading ships.
Mr Gigaba said infrastructure roll-out was pivotal to stimulating the economy and creating employment. He added that “Infrastructure development is vital for industrialization… and it is vital for the establishment of social cohesion through facilitating shared growth and the sharing of wealth.”
The coal terminal section would also be expanded.
He added that “We intend expanding the coal export line to over 81 million tons per annum by 2016. This expansion will involve the migration of Eskom’s domestic coal from road to rail, the establishment of the Waterberg rail, port expansion and capacity allocation to junior miners.”
(sourced from www.iol.co.za)
Friday, December 9, 2011
Glencore takes stake in SA coal firm
Friday, Dec 09 2011
Johannesburg - Commodities giant Glencore said on Wednesday it has completed the acquisition of a 43.66% stake in an unlisted South African coal mining business for R900m.
Glencore said in a statement that the stake in Umcebo Mining gives it access to South Africa’s principal coal field in the northeastern Mpumalanga province.
“In addition the transaction also secures access to an eventual 1.5 million metric tonnes of export allocation in Phase V of the Richards Bay Coal Terminal,” it said.
Umcebo has three thermal coal mines in operation and a stand-alone wash plant, with a total annual production capacity of 7.2 million run of mine metric tonnes.
Glencore has also been trying to gain control of South African coal miner Optimum as part of its strategy to become a major force in all top coal exporting regions.
Sourced: Reuters
Johannesburg - Commodities giant Glencore said on Wednesday it has completed the acquisition of a 43.66% stake in an unlisted South African coal mining business for R900m.
Glencore said in a statement that the stake in Umcebo Mining gives it access to South Africa’s principal coal field in the northeastern Mpumalanga province.
“In addition the transaction also secures access to an eventual 1.5 million metric tonnes of export allocation in Phase V of the Richards Bay Coal Terminal,” it said.
Umcebo has three thermal coal mines in operation and a stand-alone wash plant, with a total annual production capacity of 7.2 million run of mine metric tonnes.
Glencore has also been trying to gain control of South African coal miner Optimum as part of its strategy to become a major force in all top coal exporting regions.
Sourced: Reuters
South Africa plans Richards Bay terminal upgrade
Friday, 09 December 2011
South Africa plans to invest 3 billion rand over the next five years on new equipment to boost handling capacity at the Richards Bay Terminal RBT.L, Public Enterprises Minister Malusi Gigaba said, Reuters reports.
RBT is a multi-purpose terminal and is different from the Richards Bay Coal Terminal RBCT.L that handles exclusively coal.
Gigaba told a business meeting in the Indian ocean port of Richards Bay that government was committed to have adequate investment in container handling at the port to give it a competitive advantage.
"We plan to invest 3 billion rand over the next 5 years at the RBT in loading equipments, off-loading equipments, conveyor belts and other handling equipment, bearing in mind that it is estimated that more might need to be invested over the next 7-8 years," Gigaba said.
Gigaba reiterated plans by state-owned logistics group Transnet to expand the coal export line leading to the RBCT to 81 million tonnes per year by 2016.
"This expansion of the coal export line will involve the migration of Eskom's domestic coal from road to rail, the establishment of the Waterberg rail, port expansion and capacity allocation to junior miners," he said.
RBCT is the world's single largest export coal terminal, with an expanded capacity of 91 million tonnes.
Source: Port News
Wednesday, December 7, 2011
Richard Bay coal export prices rise for first week in seven
Wednesday, 07 Dec 2011
Bloomberg reported that coal export prices at South Africa’s Richards Bay, the continent’s biggest terminal for shipping the fuel, rose for the first week in seven.
Bloomberg from researcher IHS McCloskey, prices increased 22 cents, or 0.2% last week to an average USD 102.52 a metric tonne, following a 3.4% decline in the week ended November 25.
The price quoted is on a free on board basis, excluding delivery costs.
(Sourced from Bloomberg.net)
Bloomberg reported that coal export prices at South Africa’s Richards Bay, the continent’s biggest terminal for shipping the fuel, rose for the first week in seven.
Bloomberg from researcher IHS McCloskey, prices increased 22 cents, or 0.2% last week to an average USD 102.52 a metric tonne, following a 3.4% decline in the week ended November 25.
The price quoted is on a free on board basis, excluding delivery costs.
(Sourced from Bloomberg.net)
Euro coal price up by 25 to 50 cents with oil gains
Wednesday, 07 Dec 2011
Reuters reported that physical prompt coal prices moved up by around 25 to 50 cents on Monday in line with oil's gains.
No fixed price trades were reported and demand remained minimal in Europe although steady enquiries are still coming through from China for January cargoes and several new Indian tenders have been issued.
One exporter said that "Oil's been the driver again, fundamentals are taking a back seat but the gap between API4 swaps and Richards Bay prices is too wide again and that's putting off buyers.”
Some analysts are forecasting a fall in prices from Q1 due to growing supply and limp demand but they caution that any further surge in oil will keep a floor under coal and stop a drift below $100.
A utility trader said that "South African coal looks on paper as if it's very good value compared with Indonesian into India but it remains to be seen what they'll actually buy.”
Chinese trade importers have said repeatedly during the past few months that they are not looking for spot cargoes due to high port stockpiles and credit issues but China imported a record level of South African coal in October and November.
(Sourced from Thomson Reuters)
Reuters reported that physical prompt coal prices moved up by around 25 to 50 cents on Monday in line with oil's gains.
No fixed price trades were reported and demand remained minimal in Europe although steady enquiries are still coming through from China for January cargoes and several new Indian tenders have been issued.
One exporter said that "Oil's been the driver again, fundamentals are taking a back seat but the gap between API4 swaps and Richards Bay prices is too wide again and that's putting off buyers.”
Some analysts are forecasting a fall in prices from Q1 due to growing supply and limp demand but they caution that any further surge in oil will keep a floor under coal and stop a drift below $100.
A utility trader said that "South African coal looks on paper as if it's very good value compared with Indonesian into India but it remains to be seen what they'll actually buy.”
Chinese trade importers have said repeatedly during the past few months that they are not looking for spot cargoes due to high port stockpiles and credit issues but China imported a record level of South African coal in October and November.
(Sourced from Thomson Reuters)
Tuesday, November 22, 2011
Continental Coal update on operations and new coal project acquisition
Tuesday, 22 Nov 2011
African focused coal mining investment and production company Continental Coal Limited provide an update on operating and financial performance at its thermal coal mining and processing operations in South Africa and background on the strategic acquisition of the Wolvenfontein Coal Project.
Ferreira Coal Mine and Delta Processing Operations
During the month of October 2011, ROM coal production of 69,228 tonnes at the Ferreira Mine was achieved, 13% above the average monthly ROM production in the previous quarter. The Delta Processing Operations washed a total of 81,642 tonnes for the month.
Railings to the Richards Bay Coal Terminal from the Company’s Anthra Rail Siding for the month totaled 64,191 tonnes of high quality export thermal coal. This represents a 47% increase on the average monthly tonnes railed to RBCT during the previous 2011 quarter.
Vlakvarkfontein Coal Mine
During the month of October 2011, the Vlakvarkfontein Coal Mine achieved ROM coal production of 102,796 tonnes a 9% increase on the average monthly tonnes of ROM production in the September 2011.
Thermal coal sales from the Vlakvarkfontein Coal Mine to the South African domestic market of 117,122 tonnes of thermal coal were made during the month. This was approx. 9% below the record average monthly sales of 128,148 tonnes of domestic sales achieved in the previous quarter.
Wolvenfontein Coal Project
The Company’s South African subsidiary Continental Coal Limited has executed a Sale Agreement with South African based Universal Pulse Trading (Pty) Limited and completed the acquisition of a 100% interest in the Wolvenfontein Coal Project for total consideration of ZAR 10.4 million payable in equity.
The Wolvenfontein Coal Project is located approx. 80km east of Johannesburg and 4km south of the town of Delmas in the Nkangala District Municipality, Mpumalanga Province. The Company’s Vlakplaats Coal Project, which has total JORC compliant resources of 187.7 million tonne is located less than 5km to the east.
Key points:
1. Run of mine thermal coal production of 172,024 tonnes achieved at the Ferreira and Vlakvarkfontein Coal Mines for the month of October 2011 in line with annual target of 2 million tonne per annum
2. Ferreira Mine and Delta Processing Operations achieve record monthly run-of mine coal production and record high quality export thermal coal sales for the month of October
3. Ferreira and Vlakvarkfontein Coal Mines generate unaudited aggregate EBITDA of ZAR 10.1 million for the month of October and ZAR 38.9 million for the first 4 months of the financial year
4. Acquisition of the Wolvenfontein Coal Project, which has a JORC compliant resource of 36.7 million tonne and is strategically located to the east of the Company’s Vlakplaats Coal Project
African focused coal mining investment and production company Continental Coal Limited provide an update on operating and financial performance at its thermal coal mining and processing operations in South Africa and background on the strategic acquisition of the Wolvenfontein Coal Project.
Ferreira Coal Mine and Delta Processing Operations
During the month of October 2011, ROM coal production of 69,228 tonnes at the Ferreira Mine was achieved, 13% above the average monthly ROM production in the previous quarter. The Delta Processing Operations washed a total of 81,642 tonnes for the month.
Railings to the Richards Bay Coal Terminal from the Company’s Anthra Rail Siding for the month totaled 64,191 tonnes of high quality export thermal coal. This represents a 47% increase on the average monthly tonnes railed to RBCT during the previous 2011 quarter.
Vlakvarkfontein Coal Mine
During the month of October 2011, the Vlakvarkfontein Coal Mine achieved ROM coal production of 102,796 tonnes a 9% increase on the average monthly tonnes of ROM production in the September 2011.
Thermal coal sales from the Vlakvarkfontein Coal Mine to the South African domestic market of 117,122 tonnes of thermal coal were made during the month. This was approx. 9% below the record average monthly sales of 128,148 tonnes of domestic sales achieved in the previous quarter.
Wolvenfontein Coal Project
The Company’s South African subsidiary Continental Coal Limited has executed a Sale Agreement with South African based Universal Pulse Trading (Pty) Limited and completed the acquisition of a 100% interest in the Wolvenfontein Coal Project for total consideration of ZAR 10.4 million payable in equity.
The Wolvenfontein Coal Project is located approx. 80km east of Johannesburg and 4km south of the town of Delmas in the Nkangala District Municipality, Mpumalanga Province. The Company’s Vlakplaats Coal Project, which has total JORC compliant resources of 187.7 million tonne is located less than 5km to the east.
Key points:
1. Run of mine thermal coal production of 172,024 tonnes achieved at the Ferreira and Vlakvarkfontein Coal Mines for the month of October 2011 in line with annual target of 2 million tonne per annum
2. Ferreira Mine and Delta Processing Operations achieve record monthly run-of mine coal production and record high quality export thermal coal sales for the month of October
3. Ferreira and Vlakvarkfontein Coal Mines generate unaudited aggregate EBITDA of ZAR 10.1 million for the month of October and ZAR 38.9 million for the first 4 months of the financial year
4. Acquisition of the Wolvenfontein Coal Project, which has a JORC compliant resource of 36.7 million tonne and is strategically located to the east of the Company’s Vlakplaats Coal Project
Thursday, October 27, 2011
S.Africa's Transnet says moving RBCT coal at record
Thu,Oct 227, 2011
JOHANNESBURG (Reuters) - South Africa's logistics group Transnet has been moving coal to the Richards Bay Coal Terminal at record rates in recent months, showing the market that it may be turning the corner and reversing years of underperforming infrastructure.
Chief Executive Brian Molefe said on Wednesday that the company had recently managed to move 1.6 million tonnes of coal per week and expected to keep up the pace, while exports from the terminal had been around 1.4 million tonnes.
Coal producers in South Africa, including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata, have long been eager to export more coal to meet rising demand from India and China.
"In the last three months we had record numbers of trains going to RBCT ... there are stockpiles at the terminal of around 5 million tonnes," Molefe told journalists, adding the company was exploring options to also transport coal to alternative ports around RBCT to ensure more shipments go out.
"Maybe we caught them (coal exporters) by surprise. I'm sure in the next few weeks they will catch their breath and ramp up their export capacity," he said, adding that the allocation of coal export capacity to emerging miners needed to be increased.
Transnet moved 63 million tonnes of coal to RBCT last year, far below the terminal's capacity of 91 million tonnes, but the logistics firm is investing heavily to raise capacity on the rail line to 81 million tonnes by 2015.
SWAZI LINK
The group also plans to free up an additional 14 million tonnes of capacity on the coal line by moving non-coal cargo to a new line via Swaziland.
The Swazi link, expected within six years, will cost around 12.3 billion rand.
Some 7.3 billion of that will be financed by Swazi Rail, and Molefe said its counterpart in the landlocked African state was confident it would find the money to build the link, despite the impoverished country's current economic woes.
Molefe also said a planned rail link to the Waterberg coal fields would be completed within the same six-year period and would carry over 20 million tonnes of coal per year.
Waterberg is expected to become the country's next coal hub and supply domestic power plants and exports as reserves in the Witbank area near depletion.
For years Transnet and the private sector have been discussing the option of using public-private partnerships (PPPs) to up volumes on the coal, iron ore or manganese lines, but Molefe said the company should be able to do it on its own.
"I don't see much scope for PPPs on those lines because our performance is good and we are improving volumes quite rapidly. One shouldn't temper with what is not broken," he said.
The company is working to expand the capacity on the iron ore line to 60 million tonnes from 47 million, and Molefe said the company is already studying the option of expanding the line beyond that, going up to 70-80 million tonnes a year.
Molefe said Transnet had just signed a 6 billion rand loan facility with the African Development Bank, and he saw no problems in raising funds needed for future expansion.
State owned Transnet said its earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to end-September rose 27 percent to 9.4 billion rand, while revenue was up 20 percent to 22.4 billion rand.
(sourced Reuters)
JOHANNESBURG (Reuters) - South Africa's logistics group Transnet has been moving coal to the Richards Bay Coal Terminal at record rates in recent months, showing the market that it may be turning the corner and reversing years of underperforming infrastructure.
Chief Executive Brian Molefe said on Wednesday that the company had recently managed to move 1.6 million tonnes of coal per week and expected to keep up the pace, while exports from the terminal had been around 1.4 million tonnes.
Coal producers in South Africa, including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata, have long been eager to export more coal to meet rising demand from India and China.
"In the last three months we had record numbers of trains going to RBCT ... there are stockpiles at the terminal of around 5 million tonnes," Molefe told journalists, adding the company was exploring options to also transport coal to alternative ports around RBCT to ensure more shipments go out.
"Maybe we caught them (coal exporters) by surprise. I'm sure in the next few weeks they will catch their breath and ramp up their export capacity," he said, adding that the allocation of coal export capacity to emerging miners needed to be increased.
Transnet moved 63 million tonnes of coal to RBCT last year, far below the terminal's capacity of 91 million tonnes, but the logistics firm is investing heavily to raise capacity on the rail line to 81 million tonnes by 2015.
SWAZI LINK
The group also plans to free up an additional 14 million tonnes of capacity on the coal line by moving non-coal cargo to a new line via Swaziland.
The Swazi link, expected within six years, will cost around 12.3 billion rand.
Some 7.3 billion of that will be financed by Swazi Rail, and Molefe said its counterpart in the landlocked African state was confident it would find the money to build the link, despite the impoverished country's current economic woes.
Molefe also said a planned rail link to the Waterberg coal fields would be completed within the same six-year period and would carry over 20 million tonnes of coal per year.
Waterberg is expected to become the country's next coal hub and supply domestic power plants and exports as reserves in the Witbank area near depletion.
For years Transnet and the private sector have been discussing the option of using public-private partnerships (PPPs) to up volumes on the coal, iron ore or manganese lines, but Molefe said the company should be able to do it on its own.
"I don't see much scope for PPPs on those lines because our performance is good and we are improving volumes quite rapidly. One shouldn't temper with what is not broken," he said.
The company is working to expand the capacity on the iron ore line to 60 million tonnes from 47 million, and Molefe said the company is already studying the option of expanding the line beyond that, going up to 70-80 million tonnes a year.
Molefe said Transnet had just signed a 6 billion rand loan facility with the African Development Bank, and he saw no problems in raising funds needed for future expansion.
State owned Transnet said its earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to end-September rose 27 percent to 9.4 billion rand, while revenue was up 20 percent to 22.4 billion rand.
(sourced Reuters)
S Africa Transnet moving RBCT coal at record rate
Thursday, 27 Oct 2011
Reuters reported that South Africa logistics group Transnet has been moving coal to the Richards Bay Coal Terminal at a record rate of 1.6 million tonnes per week with stockpiles at the terminal rising.
Mr Brian Molefe CEO of Transnet said "We've been transporting on a weekly basis of around 1.6 million tonnes what has been exported out of the terminal has been around 1.4 million tonnes. There are stockpiles at RBCT of around 5 million tonnes."
He added that the company was exploring options to transport the coal to alternative ports around RBCT to make sure more shipments go out. He also said the allocation of coal export capacity to emerging coal miners needed to be increased.
Coal producers in South Africa including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata have been eager to export more coal to meet rising demand from India and China but have been limited by infrastructure bottlenecks.
Recent improvements on the coal line have been paying off, limiting bottlenecks and derailments on the line. However, the rail line capacity is still far below RBCT's of 91 million tonnes per year.
Transnet plans to raise capacity on the rail line to 81 million tonnes by 2015. Last year the logistics group moved 63 million tonnes to RBCT.
(sourced from Reuters)
Reuters reported that South Africa logistics group Transnet has been moving coal to the Richards Bay Coal Terminal at a record rate of 1.6 million tonnes per week with stockpiles at the terminal rising.
Mr Brian Molefe CEO of Transnet said "We've been transporting on a weekly basis of around 1.6 million tonnes what has been exported out of the terminal has been around 1.4 million tonnes. There are stockpiles at RBCT of around 5 million tonnes."
He added that the company was exploring options to transport the coal to alternative ports around RBCT to make sure more shipments go out. He also said the allocation of coal export capacity to emerging coal miners needed to be increased.
Coal producers in South Africa including Anglo American, BHP Billiton, Exxaro, Optimum Coal and Xstrata have been eager to export more coal to meet rising demand from India and China but have been limited by infrastructure bottlenecks.
Recent improvements on the coal line have been paying off, limiting bottlenecks and derailments on the line. However, the rail line capacity is still far below RBCT's of 91 million tonnes per year.
Transnet plans to raise capacity on the rail line to 81 million tonnes by 2015. Last year the logistics group moved 63 million tonnes to RBCT.
(sourced from Reuters)
Tuesday, October 25, 2011
China looking to resell Indonesian coal cargoes - Barclays
Tue,25 Oct 2011
Commodity Online reported that anecdotal evidence has suggested that China is even looking to resell Indonesian cargoes back into the seaborne coal market, further heightening worries for softer import demand for the rest of Q4.
The international coal benchmarks tumbled amidst weak market fundamentals due to the current global supply glut. API2 and API4 shifted downward roughly USD 3 across the curve.
Stocks at European ports and Richards Bay remain quite high, with little buying interest from consumers because the spot market European utilities have not sourced coal aggressively despite improved river water levels and higher clean dark spreads as coal and carbon prices have fallen recently.
Chinese and Indian demand remains lacklustre, giving little support for Richards Bay prices.
(sourced from Commodity Online)
Commodity Online reported that anecdotal evidence has suggested that China is even looking to resell Indonesian cargoes back into the seaborne coal market, further heightening worries for softer import demand for the rest of Q4.
The international coal benchmarks tumbled amidst weak market fundamentals due to the current global supply glut. API2 and API4 shifted downward roughly USD 3 across the curve.
Stocks at European ports and Richards Bay remain quite high, with little buying interest from consumers because the spot market European utilities have not sourced coal aggressively despite improved river water levels and higher clean dark spreads as coal and carbon prices have fallen recently.
Chinese and Indian demand remains lacklustre, giving little support for Richards Bay prices.
(sourced from Commodity Online)
Saturday, October 22, 2011
Continental Coal on track with development of third South African coal mine
Sat, 22 Oct 2011
First production from the underground mining operation is forecast to commence in the June quarter of 2012 with full production targeted to be achieved in the September quarter of 2012.
Development activities at Continental's third thermal coal mine are proceeding on schedule with the box-cut at the mine already excavated to a depth of 5.5 metres. The first blast in the box-cut was successfully completed on 15 October 2011.
Excavation of the pollution control dam is now 80% complete and the installation of the dam lining is scheduled to commence later this month. The ZAR 96 million decline development tender will be finalised in October 2011 and mobilisation to site is scheduled in early November 2011.
The construction of the terraces for the site buildings, the contractors lay down area, as well as the access roads and visual berms is now 65% complete. In addition, the underground mining equipment tenders for the Penumbra Coal Mine have been adjudicated by Continental and TWP Projects and meetings have been held with the preferred supplier for the ZAR 116 million equipping of the two production sections with the continuous miners and shuttle cars or battery haulers.
The Penumbra Coal Mine is on track to produce 500,000 tonnes per annum of a high quality export thermal coal product. Production of 750,000 tonnes of ROM coal from the Penumbra Coal Mine will be beneficiated through the existing Delta Processing Operations which comprises a 300tph coal processing plant and the 1.2Mtpa Anthra Rail Siding.
The export thermal coal product will be railed through to the Richards Bay Coal terminal under existing rail contracts and sold to EDF Trading and other export off-take agreements.
(sourced proactiveinvestors)
First production from the underground mining operation is forecast to commence in the June quarter of 2012 with full production targeted to be achieved in the September quarter of 2012.
Development activities at Continental's third thermal coal mine are proceeding on schedule with the box-cut at the mine already excavated to a depth of 5.5 metres. The first blast in the box-cut was successfully completed on 15 October 2011.
Excavation of the pollution control dam is now 80% complete and the installation of the dam lining is scheduled to commence later this month. The ZAR 96 million decline development tender will be finalised in October 2011 and mobilisation to site is scheduled in early November 2011.
The construction of the terraces for the site buildings, the contractors lay down area, as well as the access roads and visual berms is now 65% complete. In addition, the underground mining equipment tenders for the Penumbra Coal Mine have been adjudicated by Continental and TWP Projects and meetings have been held with the preferred supplier for the ZAR 116 million equipping of the two production sections with the continuous miners and shuttle cars or battery haulers.
The Penumbra Coal Mine is on track to produce 500,000 tonnes per annum of a high quality export thermal coal product. Production of 750,000 tonnes of ROM coal from the Penumbra Coal Mine will be beneficiated through the existing Delta Processing Operations which comprises a 300tph coal processing plant and the 1.2Mtpa Anthra Rail Siding.
The export thermal coal product will be railed through to the Richards Bay Coal terminal under existing rail contracts and sold to EDF Trading and other export off-take agreements.
(sourced proactiveinvestors)
Monday, July 25, 2011
South Africa coal miners start strike
Mon Jul 25, 2011
* Eskom sees no immediate impact from coal strike
* Above inflation wage deals hurting economy, analysts
By Agnieszka Flak and Olivia Kumwenda
JOHANNESBURG, July 25 - Tens of thousands of South African coal workers went on strike on Monday seeking inflation-busting 14 percent wage increases, but power utility Eskom said the
stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.
Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so, seeking raises double or triple the 5 percent inflation rate in the mid-year bargaining session known locally as "strike season".
State-run Eskom , which relies on coal for most of its power generation, said the latest strike would only have an impact if it became protracted.
"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.
Lesiba Seshoka, spokesman for the powerful National Union of Mineworkers (NUM), said about 150,000 were on strike and employers have offered pay rises of 7 to 8.5 percent.
The chamber of mines said there are about 30,000 unionised workers in the coal sector and it was unclear how many were striking.
Employers over the past two years have struck wage deals averaging about 8 percent with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa. They have also slashed jobs over the period to make up for the higher personnel costs.
Independent coal analyst Xavier Prevost said: "If there is no compromise and they continue like this, it's going to be serious and the damage to the economy will be big."
"If we don't produce coal, the first to be affected will be exports. Our (export) stockpiles will probably not last longer than 15 days".
The Richards Bay Coal Terminal, which ships most of South Africa's coal abroad, said stocks stood at a healthy 2.99 million tonnes at the end of June.
Eskom has been under pressure to build new plants to avoid a repeat of the power shortage that brought the economy to its knees in 2008, forcing mines to shut down for days and costing
the country billions of dollars in lost output.
It plans steep increases in electricity prices to pay for much-needed new power stations, adding to inflationary pressures and taking more money out of middle-class paychecks.
But Eskom is facing political pressure to settle with workers. The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.
The Chamber of Mines is negotiating on behalf of several coal mining groups, including Anglo Thermal Coal SA , Exxaro , Optimum Coal and Xstrata Coal.
Read more
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
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%
* Eskom sees no immediate impact from coal strike
* Above inflation wage deals hurting economy, analysts
By Agnieszka Flak and Olivia Kumwenda
JOHANNESBURG, July 25 - Tens of thousands of South African coal workers went on strike on Monday seeking inflation-busting 14 percent wage increases, but power utility Eskom said the
stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.
Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so, seeking raises double or triple the 5 percent inflation rate in the mid-year bargaining session known locally as "strike season".
State-run Eskom , which relies on coal for most of its power generation, said the latest strike would only have an impact if it became protracted.
"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.
Lesiba Seshoka, spokesman for the powerful National Union of Mineworkers (NUM), said about 150,000 were on strike and employers have offered pay rises of 7 to 8.5 percent.
The chamber of mines said there are about 30,000 unionised workers in the coal sector and it was unclear how many were striking.
Employers over the past two years have struck wage deals averaging about 8 percent with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa. They have also slashed jobs over the period to make up for the higher personnel costs.
Independent coal analyst Xavier Prevost said: "If there is no compromise and they continue like this, it's going to be serious and the damage to the economy will be big."
"If we don't produce coal, the first to be affected will be exports. Our (export) stockpiles will probably not last longer than 15 days".
The Richards Bay Coal Terminal, which ships most of South Africa's coal abroad, said stocks stood at a healthy 2.99 million tonnes at the end of June.
Eskom has been under pressure to build new plants to avoid a repeat of the power shortage that brought the economy to its knees in 2008, forcing mines to shut down for days and costing
the country billions of dollars in lost output.
It plans steep increases in electricity prices to pay for much-needed new power stations, adding to inflationary pressures and taking more money out of middle-class paychecks.
But Eskom is facing political pressure to settle with workers. The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.
The Chamber of Mines is negotiating on behalf of several coal mining groups, including Anglo Thermal Coal SA , Exxaro , Optimum Coal and Xstrata Coal.
Read more
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
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%
Monday, March 14, 2011
Coal agency ‘made no secret of lost funds’
Instituted civil and criminal proceedings against the unnamed employee who left the company
Mon Mar14, 2011 07:17:12 AM
By Allan Seccombe
MHLATUZE Bay Coal Administrators says it has been advising its members since July last year of the misappropriation of funds under its control, one of the reasons the Department of Mineral Resources gave for its decision to strip Mhlatuze of its responsibilities in managing a four-million-ton-a-year Quattro export programme at Richards Bay.
The department, citing misappropriation of at least R5,5m from Mhlatuze and other irregularities, awarded the administration of Quattro, intended to benefit junior, black-empowered coal companies, to Ubu Logistics, a subsidiary of Alec Erwin’s Ubu Investment Holdings.
Mhlatuze was unavailable for comment on Tuesday when the department made its decision public. It said on Friday it wanted to correct inaccurate implications in various media reports.
The department said Quattro had mainly benefited traders and large mining companies, not junior, empowered coal producers.
Mhlatuze said in a statement last week: " Mhlatuze does not have authority over, and is in no way responsible for, the process of allocation of export tonnage entitlement through Richards Bay Coal Terminal to Quattro users."
It said comments related to "possible fronting and the involvement of trading companies in the supply chain, or the matter of members not mining their own coal but trading coal from other companies, refer to aspects of the programme which were never in the ambit of (Mhlatuze) but were the responsibility of the Coal Industry Task Team, an oversight committee chaired by the (department)".
Mhlatuze has appointed a consultant to conduct a full forensic audit into the misappropriation of funds by a former employee. It instituted civil and criminal proceedings against the unnamed employee, who has left the company. It said it had kept interested parties abreast of developments. (BusinessDay)
By Allan Seccombe
MHLATUZE Bay Coal Administrators says it has been advising its members since July last year of the misappropriation of funds under its control, one of the reasons the Department of Mineral Resources gave for its decision to strip Mhlatuze of its responsibilities in managing a four-million-ton-a-year Quattro export programme at Richards Bay.
The department, citing misappropriation of at least R5,5m from Mhlatuze and other irregularities, awarded the administration of Quattro, intended to benefit junior, black-empowered coal companies, to Ubu Logistics, a subsidiary of Alec Erwin’s Ubu Investment Holdings.
Mhlatuze was unavailable for comment on Tuesday when the department made its decision public. It said on Friday it wanted to correct inaccurate implications in various media reports.
The department said Quattro had mainly benefited traders and large mining companies, not junior, empowered coal producers.
Mhlatuze said in a statement last week: " Mhlatuze does not have authority over, and is in no way responsible for, the process of allocation of export tonnage entitlement through Richards Bay Coal Terminal to Quattro users."
It said comments related to "possible fronting and the involvement of trading companies in the supply chain, or the matter of members not mining their own coal but trading coal from other companies, refer to aspects of the programme which were never in the ambit of (Mhlatuze) but were the responsibility of the Coal Industry Task Team, an oversight committee chaired by the (department)".
Mhlatuze has appointed a consultant to conduct a full forensic audit into the misappropriation of funds by a former employee. It instituted civil and criminal proceedings against the unnamed employee, who has left the company. It said it had kept interested parties abreast of developments. (BusinessDay)
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