Coal news and updates

Transnet CEO Molefe raises alarm on softening coal price

Transnet CEO Brian Molefe on Tuesday raised the alarm over the ever-declining coal price.

The company planned to undertake a study on the impact of the lower coal price and said it would make an announcement in due course.

Molefe, speaking during a conference call with the media, said the price of coal had impacted the State-owned freight company, but the extent had not been determined.

The price of coal had dropped drastically over the past few months from a high of $135/t to $75/t and Molefe was “worried” about the possibility of exporters holding back coal exports.

The review would examine what the impact of the lower pricing would be on future coal volumes.

However, despite these concerns, Molefe reassured media that it would maintain its ambitious infrastructure expansion plans, continuing its R307.5-billion Market Demand Strategy programme.

Source: www.miningweekly.com