Exxaro Resources Anticipates Higher Level of Thermal Coal Exports than Predicted
Exxaro Resources, the South Africa-based mining company, is expecting to see an increase in its thermal coal exports.
The prediction was made by Finance Director Wim de Klerk In a Coal Commodity review issued by the company in advance of the publication of its interim financial results due on August 21, which will give a full round up of the company’s first half-year performance.
It states that the total expected full year export volumes are estimated to be higher than the previously guided 4.5 million tonnes (Mt), although he did not specify a figure at this time.
Production volumes for the first half of 2014 are expected to be marginally lower than the second half of 2013 due to lower off-take from Matimba resulting in Grootegeluk cutting back production due to full stockpiles, production interruptions at Matla, lower production at Inyanda and cessation of production at the New Cydesdale Colliery.
Overall production volumes are expected to be marginally higher than the first half of 2013 mainly due to increase at Matla, Gootegeluk and Leeuwpan.
Sales to South Africa’s utility Eskom are expected to be lower than the second half of 2013 due to few units running at Matimba and production difficulties at Matla. However, Eskom sales volumes are expected to remain stable in comparison to first half of 2013.
The report also revealed that state logistics company Transnet Freight Rail’s rate for January to May had been 60.6 million mt/year despite being hit by power outages and the annual 10-week long rail maintenance stoppage.
Exxaro Mining said the demand in the internal coal markets was generally holding up well amidst the global drive for energy efficiency and energy mix changes required by various countries.
Both global thermal and metallurgical markets, are however, over supplied and some of the supply side factors are structural.
This, it said, may even prolong the current imbalance between supply and demand and pricing is forecasted to be generally flat for the rest of the year.
Exxaro is one of the largest South Africa-based diversified resources groups, with interests in the coal, titanium dioxide, ferrous and energy markets and current business interests in South Africa, Botswana, Republic of the Congo, Inner Mongolia and Australia.
The company is the second-largest coal producer in South Africa and is listed on the JSE Limited, where it is a constituent of both the Top 40 and Socially Responsible Investment (SRI) indices.
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