Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

S.Africa's Thungela agrees to amend rail contract with Transnet

08/18/2022 | 05:21am EST
FILE PHOTO: One of the two new rail-mounted stacker reclaimers which scoop up and transfer coal into and out of the yard is seen at Africa's largest coal export facility, the Richards Bay Coal Terminal, Richards Bay harbour

(Reuters) - South African coal exporter Thungela Resources on Thursday said it had agreed to amend a long-term haulage contract with Transnet after the state-owned rail operator declared force majeure in April.

Transnet declared force majeure and sought to terminate long-term coal transportation agreements in April, saying large-scale theft of copper cables, insufficient maintenance and a shortage of locomotives impacted its capacity to haul minerals to port.

Thungela and other coal exporters initially rejected Transnet's bid to cancel the long-term haulage agreements, but subsequently entered into discussions with the rail utility for amended contracts.

In July, Transnet announced it had lifted force majeure on nine coal exporters that had agreed to amend transportation contracts, but threatened unspecified action against bigger miners who were yet to sign new agreements.

In a statement, Thungela said it had now agreed to an amended contract that would see Transnet committing to haul at least 60 million tonnes of coal for all coal exporters during its current financial year, which ends in March 2023.

Transnet's deteriorating rail performance resulted in a 12% decline in export coal it hauled to port to 58.1 million tonnes during its last financial year, from 66.3 million tonnes previously.

Transnet's logistical problems have limited South African coal miners' ability to take advantage of high prices and surging demand for thermal coal, especially in Europe where customers are switching from expensive natural gas to coal due to Russia's conflict with Ukraine.

Europe has banned coal imports from Russia, which used to supply 45% of its coal.

On Monday, Thungela said the huge demand had boosted its half-year profit more than 20 times compared to the previous year, as South African coal exports to Europe rose eight-fold during the first six months of 2022.

(Reporting by Nelson Banya; editing by David Evans)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
S&P GSCI NATURAL GAS INDEX -4.90% 343.197 Real-time Quote.96.51%
THUNGELA RESOURCES LIMITED 4.20% 287 End-of-day quote.239.48%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 1.51% 60.65 Delayed Quote.-19.47%
Latest news "Economy"
09:41aU.S. Black Friday online sales hit record $9 bln despite high inflation- Adobe Analytics
RE
09:39aCongo schedules presidential elections for Dec 2023
RE
09:38aKyiv summit promotes 'Grain from Ukraine' for most vulnerable
RE
09:26aAdobe says Black Friday online sales hit record $9 billion
RE
08:57aBritish transport cleaning staff to strike over pay - union
RE
08:52aBelarus foreign minister Makei dies - Belta
RE
07:43aProtests erupt in Xinjiang and Beijing after deadly fire
RE
07:34aUkraine marks Soviet-era famine as Russia's war rages on
RE
07:23aVatican says China violated pact on bishops, expresses regret
RE
07:06aItaly PM tasks top aide with broadband strategy as bid for TIM grid falters
RE
Latest news "Economy"