RB coal terminal expansion makes headway

Grindrod has raised R2.4 billion of the planned R3 billion it needs to acquire in capital for new projects in the pipeline, which include the expansion of the Richards Bay coal terminal in the KwaZulu Natal port city. “Aside from the Richards Bay terminal, these projects include the expansion of the Matola coal terminal in Mozambique and the oil tanking facilities and will take advantage of the enormous opportunity in our rail division,” said a Grindrod spokesperson. The issue and placement of 96 million shares to qualifying investors at R25 each was concluded in May, raising the R2.4 billion. Further to this book build, Grindrod has acquired the current Black Economic Empowerment (BEE ) interests in certain Grindrod subsidiaries and entered into a new BEE transaction at the Grindrod Limited level. Looking specifically at the expansion of RBT Grindrod Terminals in Richards Bay, RBT Resources and Grindrod entered into an agreement last year to expand and develop the existing Navitrade operation and adjoining RBT land into a fully mechanised coal export terminal. Bongani Biyela, chief executive at RBT-Grindrod Terminals, said that the existing facility, Navitrade, was already in operation and was an ideal terminal for junior miners. Its current throughput capacity is 3 million tons per annum and will increase gradually over three phases: 5 million tons in the next six months and then 8 million tons, 10 million tons and eventually 20 million tons’ annual throughput capacity. Biyela noted that an inland terminal would be developed when the annual throughput capacity reached approximately 8 million tons. “This will allow junior miners to consolidate greater volumes so that those with low production volumes have access to export markets and can exploit economies of scale as a collective. The terminal could then accommodate different grades of coal, spot loading and beneficiation,” he said. The intention is to allocate 50% of the terminal capacity to emerging black miners, and 50% to mature BEE mining companies who will be the anchor tenants, said Biyela. CAPTION An aerial view of the Richards Bay coal terminal. Photo: Grindrod