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Real Economy News in Real Time
R/€ = 14.98 Change: 0.05
R/$ = 12.24 Change: 0.04
Au 1328.42 $/oz Change: -6.97
Pt 1004.00 $/oz Change: 4.03
 
 
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Exxaro, Transnet sign coal export transportation agreement

9th November 2017
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From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley: Exxaro Resources has signed a ten-year coal export transportation agreement with Transnet, which will increase coal volumes from the Limpopo-based Waterberg region to the Richards Bay Coal Terminal, in KwaZulu-Natal, allowing for the transportation of 7.8-million tons a year of export coal. Anine Kilian has the story.

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Anine Kilian:
The agreement will also enable the GG6 expansion of Exxaro’s Grootegeluk coal operation in the Waterberg area, which requires rail capacity to RBCT.

Exxaro CEO Mxolisi Mgojo noted that the company would invest 50% of its R20-billion coal capital expenditure programme over the next five years in the Waterberg area.

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Exxaro CEO Mxolisi Mgojo:

Anine Kilian:
Phase 2 of the Waterberg Expansion Programme will grow export rail capacity to six-million tons through incremental upgrades of the existing rail networks and yards using additional loops, while maintaining the existing axle load, electrical upgrades and improved train control systems.

He said the agreement was a key contribution to the Waterberg expansion programme, earmarked in the National Development Plan as a strategic coal mining area and national asset to growing the South African economy,” said Mgojo.

The new agreement will also see the collapse of the old contract between Transnet and Exxaro. “This fresh agreement comes at the time when the Transnet’s Waterberg programme is in full swing, with plans to complete the second phase of the project in March 2019,” noted Mgojo.

Three-million tons of coal will come from the Waterberg once all the project phases have been ramped up.

Mgojo highlighted that Exxaro was proud to be developing the Waterberg area in collaboration with Transnet, noting that it was a realisation of Exxaro’s vision to contribute to the unlocking of the Waterberg, create jobs and power economic development in South Africa.

He added that Transnet had a proven track record in building rail capacity and expanding export rail performance in the Waterberg area and across South Africa.

Also speaking at the signing of the agreement, Transnet CEO Siyabonga Gama said that there were a number of stages involved in the development.

Transnet CEO Siyabonga Gama:
 

Sashnee Moodley:
Other news making headlines:

SAB invests millions in black-owned SMMEs

Beverage and brewing company AB InBev subsidiary South African Breweries has invested more than R200-million into creating an inclusive supply chain which incorporates black-owned and black women-owned small, medium-sized and microenterprises through its supplier development programmes, SAB Accelerator and SAB Thrive.

SAB President Ricardo Tadeu:


Sashnee Moodley:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy. 

EDITED BY: Creamer Media Reporter
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