Coal companies count the cost of rail shut-down

The impending 20-day closure of Transnet Freight Rail’s coal line for maintenance will result in a reduction in shipping and lost revenue for the company’s coal mining operations in South Africa, according to Pranil Ramchander, the Anglo American head of communications. He said the planned shut-down had been communicated to Anglo, whose thermal coal mining operations at five mines it operates in Witbank produce more than 22 million tonnes for the export and local markets, and would be severely affected by the longer-than-plannedfor closure. The company has nine mines in South African and partnerships in several others whose exports could be severely disrupted. “The normal (planned) shut-down usually takes 10 days but this year it was extended to 20 days. The shut-down has been moved to these days to take into account municipal elections,” he said. Municipal elections will take place on May 18. The announcement took the Chamber of Mines by surprise, he said. On Friday Transnet Freight Rail’s Sandile Simelane said the fully electrified 580-kilometre coal line, which starts in Mpumalanga and runs through KwaZulu Natal to Richards Bay, would be shut from May 23 to June 11 as part of its planned maintenance. The closure will not be the first disruption for the year. In January, an incident was reported when wagons derailed between Intshamanzi and Enqolothi near Ermelo. The derailment resulted in 90 export coal trains being cancelled. No injuries were reported at the time. “We have made plans to try to build up stocks at RBCT and have reduced shipping for the period, to prevent demurrage.”