South African Coal Exports to Europe Increase as Demand Rises Amid Russia-Ukraine War, Citizens Unimpressed

• European countries are willing to splurge on South African coal following the ban on Russian coal as part of its sanctions
• The demand for coal resulted in the average price of about R3,936 per ton, compared to R1,23 a ton last year
• South Africa could not take full advantage of the demand due to the limited capacity of the state-owned rail service

JOHANNESBURG - South African coal has become sought-after in several European countries, and sales have risen substantially during the first of the year. Leading local coal exporter, Thungela Resources, said the high demand increased due to the ban on Russian coal as part of its sanctions.

The company that is part of the Richards Bay Coal Terminal (RBCT) noted that Europe was competing for South African coal with Asian countries. According to TimesLIVE, Thungela CFO Deon Smith, coal exports from RBCT to Europe increased by 720% in the first half of 2022, while exports to Asia dropped by 17%.

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Smith said the demand resulted in the average price of about R3,936 per ton, compared to R1,23 a ton last year. The profit it yielded was more than 20 times the year before.

However, Thungela CEO July Ndlovu told Reuters that the limited capacity of Transnet, due to poor maintenance, lack of locomotives and theft of copper cables meant South Africa could not take full advantage of the demand.

South Africans outraged by the exports:

Katleho James said:

“This was the aim all along. extract more coal from S.A and other African countries for their benefit while South Africans continue to live in squalor! renewable energy is unsustainable.”

Sibusiso Thenga commented:

“Same people telling us to stay away from coal? South Africa has no leadership.”

Neo G Mogomana posted:

“Then they’ll say Eskom is carrying out loadshedding because of a lack of quality coal.”

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Joppie Adam Fokker added:

“Is that why we have so much of loadshedding? Selling all the good stuff for money. Keeping the cr*p for Eskom.”

Germany’s Russian gas crisis sparks coal rush

In a related matter, Briefly News also reported “a rush like this in the summertime, it’s unheard of -- everybody wants coal,” says Frithjof Engelke, a supplier of the briquettes which have become a hot commodity in the German capital.

A looming shortage of Russian gas in the wake of the Ukraine war has reignited enthusiasm for this method of heating private homes despite its sooty residue and heavy carbon footprint.

Source: Briefly News