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  JOHANNESBURG – China was South Africa’s largest coal market in February, taking over from India, which has traditionally been South Africa’s largest coal export market.

  Normally, China does not import coal from South Africa, but 2021 has seen a shift, Mining Weekly reported in early January

  “India is the largest export market for South African coal, however the lack of flows to India in February meant China was South Africa’s largest export market at 1.25-million tonnes (Mt) of coal,” Goldman Sachs Equity Research stated in a note dated March 9.

  Exports of South African coal to China resumed last year following a five-year hiatus as Chinese importers looked for alternatives to Australian coal amid trade tensions. 

  Quoting Argus, Goldman Sachs Equity Research stated that South Africa’s Richards Bay Coal Terminal (RBCT) exported 4.6 Mt in February.

  Although RBCT shipments recovered from the 2.7 Mt in January, they were still down 13% year-on year.

  The equity research unit added that South Africa’s State-owned rail operator Transnet was working to improve rail supply to the export terminal following weeks of disruption.

  China’s power plants have been permitted to import coal from several countries without clearance restrictions, The Global Times of China has reported. This has resulted in 2021 starting on a bullish note for South African coal.

  Exports of thermal coal to China were worth $4-billion to Australia in 2019 – and the combined export revenue received by Australia from China for both thermal coal and metallurgical coal in that year totalled $13.7-billion.

  China last bought coal from South Africa in significant volumes in 2014. After that, import duties were applied and in 2015, trace element restrictions imposed.

  As reported by Mining Weekly last month, RBCT is going all out to raise its export efficiency in a bid to counter ship queuing.

  With the R1.34-billion worth of stacker reclaimers and shiploaders provided in 2018 putting in solid performances, RBCT has turned to debottlenecking conveyor projects to speed the export side of the business. The Conveyor 931 project, which got under way last month, involves the introduction of a system that will convey coal “over the top” to shiploaders.

  The world-class coal terminal exported 70.2-Mt of coal to Asia, Africa and Europe in 2020 and expects to export 77 Mt this year.

  RBCT’s shareholder base is made up of 15 coal exporting parties, comprising Anglo Operations, ARM Coal, Exxaro Coal, Glencore Operations South Africa, junior miners, Kangra Coal, Koornfontein Mines, Mbokodo, Optimum Coal Terminal, Sasol Mining, South African Coal Mine Holdings, South Dunes Coal Terminal, South32 Coal Holdings, Tumelo Coal Mines and Umcebo Mining. South32’s transaction with Seriti is close to finalisation and in the case of junior miners, an export entitlement of 4 Mt is allocated but only 2.1 Mt of it was taken up in 2020.

  RBCT received its coal in 2020 from 65 South African collieries, and the coal from these collieries was loaded on to 869 vessels, 17 fewer than in 2019. 

• [Editor:Catherine Ren]