Crypto News: Supply Lines: Europe’s coal appetite

South Africa's state-owned rail company Transnet last year delivered the smallest amount of coal in three decades from mines to the continent's biggest export facility for the fuel at Richards Bay, but shipments to Europe surged.

The overall slump in deliveries was mainly caused by a labor strike and a train derailment, followed by violence that prolonged recovery efforts and interrupted service for weeks on the line connecting collieries in Mpumalanga province to Richards Bay Coal Terminal.

The incidents added to existing security and equipment issues plaguing the port and rail operator.

Despite lower volumes arriving at RBCT, where they're loaded onto vessels, Europe's demand for the dirtiest fossil fuel in the wake of Russia's invasion of Ukraine drew more than 14.3 million tons of coal from the facility — an increase of more than 520% from the previous year.

More than a third was delivered to the Netherlands. (Read more here.)

The amount could be even higher, as some of the companies shipping from RBCT that are also shareholders — including Glencore, Thungela Resources and Exxaro Resources — have increasingly sent coal by truck to alternative ports in the region.

The surge to Europe meant less South African coal to customers in Asia, who have been the biggest buyers, receiving less than 63% of the fuel leaving RBCT in 2022 versus more than 86% of all shipments in the previous year.

Europe's ongoing appetite for the fuel could potentially see even more from the producer if plans by RBCT and Transnet to address the logistical issues are realized, which would allow the facility to reach an export target of 60 million tons in 2023.

Additional Reading:

—Paul Burkhardt in Cape Town

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