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AfrElec COAL AfrElec

Exxaro warns rail blockage could

endanger SA coal exports

SOUTH AFRICA SOUTH African coal exporter Exxaro warned rail the coal to Richards Bay.
that maintenance problems on Transnet’s rail Tsengwa said: “it became apparent that TFR
freight network could put up to 2mn tonnes of its was having problems with locomotive availabil-
coal exports from Richard’s Bay at risk in 2021. ity due to spares shortages. After a long engage-
Nombasa Tsengwa, head of Exxaro’s miner- ment with them they told us that because of
als business, said that Transnet Freight Rail faced what had happened at Transnet before, the con-
problems finding spare parts for its locomotives tracts that provided for spares had to be stopped
after supply contracts were abruptly cancelled in because of the irregularities.”
the wake of “irregularities” at Transnet. Exxaro warned that weekly deliveries by TFR
Exxaro boosted exports to 12.2mn tonnes in to Richard’s Bay were now at 1.3mn tonnes per
2020 from 9mn tonnes in 2019 despite the impact week, well short of the 1.7mn tonnes per week it
of the coronavirus (COVID-19) pandemic. needs to meet the annual target.
Its target of 12mn tonnes for 2021 is now in “They then had to stop certain of the locos so
danger from falling to 10mn tonnes. they could use spares from them. They are tell-
Exxaro also said that total exports through ing us it may take a year to correct this situation.
Richard’s Bay would now drop from the current That’s why we have said that 2mn tonnes of our
target of 76mn tonnes to 73mn tonnes in 2021. exports may be at risk because TFR may not give
She was speaking after South32 COO Mike us the full capacity that we require,” she said.
Fraser said in February that his company also Other problems affecting exports include
could face delays because of underperformance cable theft and community unrest.
on the rail network. Exxaro said in February that it would stop
In January, when Richard’s Bay presented its investing in new thermal coal assets in South
results for 2020, there was no mention of prob- Africa, although it will continue to produce
lems with TFR affecting throughput. and supply coal for domestic and international
The terminal set its throughput target for customers.
2021 at 77mn tonnes, higher than 2020’s total of Exxaro has also said that it wants to reduce
70.2mn tonnes. its coal resources by 22% and has committed to
CEO Alan Waller said at the time that the tar- being carbon neutral by 2050.™
get was linked to the available capacity of TFR to

P8 www. NEWSBASE .com Week 12 25•March•2021