RBCT invests heavily in new machinery

The Richards Bay Coal Terminal (RBCT) plans to spend R1.34bn replacing four-decades-old heavy machinery at its phase one facility, according to news reports.

MiningMx.com, cited Mike Tete, chairman of RBCT, as saying the investment decision was a signal of the South African coal industry's confidence that internationally traded prices would return to health over the long-term.

"We believe this industry will recover and when it recovers we hope we’ll be ready with the machine replacement," he reportedly said at the unveiling function in Richards Bay late last week.

Fin24 reported that some of the machinery at the coal terminal, including coal ship loaders and stacker reclaimers, had less than three years of shelf life left.

The financial daily newspaper quoted RBCT head engineer Bill Murphy as saying there would be minimal impact on shipments of coal as old machines would be used while the others were being built or replaced.