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New UserSouth Africa’s coal exports to Europe surge amid Russia-Ukraine war
19 Aug 2022
Price of thermal coal increasing to unprecedented levels,
says Thungela Resources
Demand for affordable energy sources
such as thermal coal escalated amid the energy security crisis exacerbated by
the escalation of the Russia-Ukraine conflict, South Africa-based Thungela
Resources Limited said in its H1 2022 interim results statement.
Supply
constraints in major coal-producing regions resulted in the price of thermal
coal increasing to unprecedented levels, the Johannesburg
Stock Exchange-listed thermal coal exporter added.
“Energy
security, reliability and affordability concerns in Europe have highlighted the
importance of coal in the energy transition, July Ndlovu, CEO of Thungela
Resources, said
in the statement.
“Coal
is set to remain a critical input for affordable and reliable power generation,
not only in the developing world but also in highly industrialised and
developed nations, which have recently increased their reliance on coal to meet
their energy needs.
“We
are monitoring these trends and their implications for Thungela’s strategy in
the short to medium-term, with particular attention to exploring opportunities
for geographic diversification,” he added.
Coal
sales from South Africa to Europe have increased eight-fold in the first six
months of 2022 year-on-year, digital newspaper Africa News reported, quoting
the coal exporter.
The
European Union banned Russian coal imports in response to the invasion of
Ukraine in April, but the ban took effect on August 10 as part of the
wide-ranging sanctions.
European
countries, which previously imported 45% of their coal from Russia, have been
swapping expensive natural gas for coal from Colombia, Australia, the US and
South Africa, the news report said.
The
Netherlands, Germany, Poland, Denmark, France, Italy and Ukraine are among
European countries importing growing quantities of coal from South Africa.
In
the first five months of this year, European countries imported more than three
million tonnes of coal from South Africa, up 40% more than the total volume in
2021.
Meanwhile,
South Africa’s Richards Bay Coal Terminal data showed it delivered 3.24 million
tonnes of coal to European countries by May-end, 15% higher year-on-year.