how many percent of south-african coal reserves are meanth for export?

Answer 1

Only one-third of coal produced in South Africa is exported, primarily to the European Union (EU) and East Asia.

Coal is the primary fuel produced and consumed in South Africa . The country has the world’s seventh largest amount of recoverable coal reserves (54.6 billion short tons), approximately 5% of the world total.

South Africa is the world’s sixth largest coal producer, producing 245.3 million short tons (mmst) of coal in 2002. The Mpumalanga province accounts for 83% of South African coal production, while Free State (9%) Limpopo (7%) and KwaZulu-Natal (1%) also house production facilities. Although South Africa has 19 official coal fields, 70% of recoverable reserves lie in the Highveld, Waterberg, and Witbank fields. Anglo American’s Anglo Coal (Anglo), BHP Billington’s Ingwe Coal (Ingwe), domestic mining firms Eyesizwe Coal (Eyesizwe), Kumba Resources (Kumba), Sasol Mining (Sasol), and Swiss-based Xstrata Coal South Africa (XCSA) are responsible for the majority of South Africa ’s coal production.

In July 2003, Anglo American and Sasol announced plans to develop the Kriel South coalfield, from which each is expected to produce 5.5 mmst annually. Anglo will establish an operation on the northern portion of the field, and Sasol plans to expand its existing underground operations at the Syferfontein colliery in its southern portion. Anglo Coal will invest $96 million and Sasol $40 million in the project, which is expected to commence in 2005. In October 2004, Kumba Resources revealed plans to invest $52 million to build two additional coal mines, Grootegeluk and Leeuwpan, to be completed by July 2006.

XCSA’s WitCons Colliery is currently undergoing a $4.8 million expansion expected to increase production by 50%. XCSA is also upgrading the Tavistock Colliery to raise annual production capacity from 1.2 mmst to 2 mmst. A feasibility study for full-scale production is being undertaken at XCSA’s new Goedgevonden Colliery, currently a small contractor open-pit facility that utilizes production facilities at XCSA’s nearby South Witbank mine.

In January 2003, Ingwe announced the sale of its Delmas colliery in Mpumalanga to Kuyasa Mining, a small South African empowerment firm. The sale of Delmas leaves Ingwe with operational control of seven mines in South Africa , four of which it owns and three of which are jointly owned with XCSA. Ingwe is considering merging some of its operations to maintain its position as the main supplier to South Africa ’s electricity utility, Eskom.

Although only one-third of coal produced in South Africa is exported, primarily to the European Union (EU) and East Asia , South Africa was the world’s third largest net coal exporter (73.7 mmst) in 2002.

The vast majority of South African coal exports are shipped through the Richards Bay Coal Terminal (RBCT). With the capacity to export 79.4 mmst annually, RBCT is the world’s largest coal export facility. At present, only shareholding members of the RBCT Company-- including Ingwe, Anglo, XCSA, Total South Africa, Sasol, Kangra and Eyesizwe, and JCI/Lonrho/Duiker. Ingwe, Anglo and XCSA-- are permitted to use the export facility. Ingwe, Anglo, and XCSA combined own 86% of the RBCT.

Although the South Dunes Coal Terminal (SDCT) opened in 2000 to facilitate the participation of empowerment companies in the coal export sector, RBCT exporters and the SDCT partners agreed in June 2001 to expand the RBCT as well. Because no new rail infrastructure is needed, the expansion of RBCT is considered the most cost-effective method of increasing South Africa ’s coal export capability. RBCT’s expansion will increase its annual export capacity by 11 mmst. SDCT firms will be permitted to export 7.2 mmst per year from the terminal. In March 2002, SDCT firms secured $41 million of the expansion’s $52 million total cost. The remaining $11 million will be financed by RBCT shareholders. The first shipment of coal by an empowerment entrant was loaded at the RBCT in October 2003. Its full expansion is expected to be completed in 2005.

Kumba and the Iron and Steel Corporation of South Africa (ISCOR) export coal through the Durban Coal Terminal (DCT), whereas Gold Fields utilizes the Matola Coal Terminal (MCT), both of which are located in Maputo , Mozambique. Although only 1.4 mmst of South African coal was exported through MCT in 2001, $13.8 million worth of improvements planned for the South Africa-Maputo railway and the planned dredging of the Port of Maputo to allow access to larger vessels may encourage increased exports. MCT management anticipates that the facility will have the capacity to export 5.5 mmst of coal by 2006; however, increased rail charges may hinder South African exports. Spoornet , South Africa ’s state-owned rail company, announced plans in 2003 to increase freight charges to the MCT and DCT by 30% on average over three years.

South Africa consumed 171.6 mmst of coal in 2002, 90% of which was used for electricity generation and the synthetic fuel industry. Other coal consuming sectors include the non-synthetic fuels industrial sector, metallurgical industries, and the merchant & domestic sectors.