(Bloomberg) -- South Africa’s coal shipments by rail, which plunged to the worst in three decades last year, declined in the first half of the year, but miner Thungela Resources Ltd. expects a turnaround in 2025.
State-owned Transnet SOC Ltd. transported 47.3 million tons on an annualized basis through June 30, the company said Monday in its interim results. That’s a decline of 1.3% from the same period last year despite ongoing interventions by the logistics firm. Volumes delivered from inland mines to Richards Bay Coal Terminal, the biggest facility of its kind on the continent, have dropped due to mismanagement and underinvestment.
Transnet Freight Rail’s performance “inhibits the full value realization of Thungela’s production in South Africa,” the company said. However, it’s “optimistic” that TFR “reform initiatives, strengthened by industry support, will result in improved rail performance from 2025,” it said. The optimism is in part due to a program in which miners provide money for spares.
Exxaro Resources Ltd. Chief Executive Officer Nombasa Tsengwa last week shared the view that Transnet’s performance won’t decline further, while measures that have been put in place won’t start to take effect until next year.
Transnet’s “conservative” export-coal forecast for the financial year is 54 million tons, the company said in a response to questions on Aug. 12. The company could fully revive performance in five years, according to an internal report.
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