SA coal exports flat in 2025 despite Transnet progress

COAL railed for export from South Africa so far this year implied total volumes for 2025 of 56.4 million tons, less than last year’s 56.9Mt.Commenting in his pre-close statement, Exxaro Resources finance director Riaan Koppeschaar said Transnet Freight Rail tipped 46.8Mt at Richards Bay Coal Terminal, the privately-owned export facility, from January to October – equivalent to an annualised tempo of 56.4Mt.Despite this, Koppeschaar said TFR’s performance was improving with fewer disruptions compared to earlier in the year, especially in Mpumalanga province. However, rail performance from the Waterberg region in Limpopo province “remains challenging”, said Koppeschaaar.Exxaro had a solid coal production year, but somewhat below its best hopes. Total product was forecast to be 39.6Mt including metallurgical coal sales and third party purchases. This compares to 39.5Mt in 2024. The group guided to production of between 38.9Mt to 42.8Mt.Exxaro expected to report flat year-on-year coal export sales of seven million tons with deliveries supported by alternative railing routes to Richards Bay “where it made sense”, said Koppeschaar. Domestic sales were improved.Exxaro sold into a tougher coal market this year. The export price per the API4 benchmark is forecast to average $89 per ton, well down on last year’s $105/t average.Koppeschaar described the seaborne coal market this year as undergoing a period of “adjustment”, especially in China and India where domestic policies were to reduce import dependency, preferring domestic supply. Monsoon conditions arrived sooner than usual which also affected Indian demand.Commenting on prospects for coal demand, Koppeschaar said the sector faced a number of headwinds including a milder-than-expected Northern Hemisphere winter, increased preference for renewable power and improved sourcing of domestic coal in traditional export markets. But he said “upside to demand and prices remain”.In addition to coal, Exxaro also receives a dividend from its one fifth stake in Sishen Iron Ore Company, the operating subsidiary of Anglo American-owned Kumba Iron Ore. Prices for iron ore have also been under pressure this year and were expected to average $100/t  compared to $109/t in 2024, cost and freight (CFR) China.During the period under review, Exxaro all but concluded the acquisition of manganese assets from Ntsimbintle Holdings whose joint venture partners decided not to apply their pre-emptive rights. Following completion of the deal, announced in May, Exxaro will have control of the 3.4Mt/year Tshipi Borwa manganese mine in Northern Cape province.The post SA coal exports to be flat in 2025 despite progress at Transnet appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com