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SA chrome, coal exporters may see costs rise due to Mozambique border closure
There are persistent risks to South Africa’s mining sector profitability from elevated electricity costs and possibly higher transport costs, as coal and chrome exporters switch to longer and more expensive routes due to the unrest in Mozambique that resulted in the closure of the border between the two countries for days.
The Lebombo border post linking South Africa and Mozambique was closed this year due to civil unrest following disputed elections in the neighbouring country.
The Minerals Council said yesterday that the closure of the border could lead to a spike in transport costs for South African miners, especially chrome and coal exporters.
However, the direct impact of the Mozambique crisis in terms of how it impacts mining costs for South African exporters could be muted due to challenges in measuring the relationship between distances and payloads per commodity, explained the Minerals Council.
Worse still, the substitution complexities between road and rail transportation also makes it difficult to calculate any immediate impacts.
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- [Editor:邢亞敏]
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