Richards Bay Coal Terminal monopoly squeezes out junior miners

Richards Bay Coal Terminal.

The record 75.4 million tonnes of coal exported out of the Richards Bay Coal Terminal (RBCT) in 2015 – announced earlier this year – do not tell the whole story, according a market analyst. Instead, the high volumes seem to indicate that smaller miners have lost even more market share.

Andrew Wells, managing editor at IHS Energy, said in a report that RBCT remained the cheapest and therefore most popular export route, making it harder for junior miners to compete in an increasingly low-priced environment.

“With South African coal prices languishing near seven-year lows, competitor export terminals who hope to expand capacity and attract more customers will struggle to regain market share in 2016. The market is weak and oversupplied,” said Wells.