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Exxaro plans to raise coal exports

Leeuwpan “’ one of
Exxaro’s coal operations
in South Africa
Johannesburg, South Africa — MININGREVIEW.COM — 24 August 2009 – Diversified miner Exxaro “’ a South African-based mining group, listed on the JSE “’ plans to increase its coal exports this year by up to 60%, but may be restricted by capacity constraints on the rail line from Mpumalanga to the Richards Bay export terminal.

Chief executive Sipho Nkosi said the company aimed to boost coal exports to 4.8 million tonnes this year from about 3 million tonnes last year, after exporting 2.4 million tonnes in the first six months of the year. “We hope to increase or maintain our current tonnage on the export side, but that depends on the logistics,” he added.

Reuters reports that South Africa’s Richards Bay Coal Terminal (RBCT) is due to expand its port’s annual export capacity to 91 million tonnes by October, but adds that logistics group Transnet’s rail arm said it might only transport up to 70 million tonnes this year.

Exxaro said it would be keen to sign a 10-year deal with Transnet to encourage the logistics group to expand the line, and help supply Exxaro’s capacity at the port, which is due to be increased.

Exxaro was promised by RBCT that it would get a total allocation of 6.3 million tonnes through the port, compared with its current 3.2 million tonnes.

Exxaro said it could also engage in the railing business using private haulers, but only as a last resort.