SA well positioned to thrive through coal exports, minus issues like rail bottlenecks

The shifting patterns in the global coal market could aid South Africa’s coal producers to secure more opportunities in the future.

I recently spoke on the future of South African coal in emerging global markets at this year’s Europe and MENA: Coal Prices and Trends Conference hosted by Metal Expert in Poland.  I pointed out that while demand in the US and European Union are expected to continue dropping, growth in Asia could provide new opportunities for South African coal producers to explore, provided we deal with concerns like loadshedding and rail constraints.

Current global coal mining activities reflect that 398 projects and 1800 MT of new mines are under consideration worldwide with Asian countries accounting for about 2/3 of projects in planning. Most of these projects are being developed in countries like China and India. China’s coal demand is projected to increase by 3,5% and India by 5%, while Indonesia will remain the world’s 5th biggest consumer of coal in 2023. Meanwhile, rail constraints have cost the country close to R353 billion in exports losses this year, with RBCT performing below its 91 MT capacity. Once these challenges are resolved, South African coal producers will be able to take full advantage of export opportunities that are opening up.

View the presentation below: