COAL miner Thungela Resources yesterday flagged a 44 percent jump in costs while poor rail performance continues to curb exports, putting a dampener on first-half earnings expected to be strong thanks to high coal prices.
In a trading update, Thungela said it had curtailed production to mitigate the impact of “inconsistent” rail service by South Africa’s state-owned logistics firm Transnet, resulting in a 14 percent decline in export saleable production during the first half of 2022 compared to the same period last year.
Thungela said its free on board (FOB) cost per export tonne of coal, including royalties, was expected to be 44 percent higher at R1124, compared to R782 in the first half of 2021.
- Reuters