South African Thermal Coal Miners see No Disruptions in Supplies amid COVID19 Spread

The coronavirus pandemic globally has impacted the production and supply chain of various companies causing panic in the market. However, South Africa’s thermal coal major, Glencore have confirmed that there have been “no material disruptions” at its mines, within its supply chain or its marketing business from the coronavirus pandemic.

The company confirmed that there had been a little impact on some of its smaller operations from the restrictions on movement of people imposed by various governments. The South African thermal coal export prices have been falling over past few weeks amid the tepid demand from its key-consuming countries like India and Pakistan.

Another coal mining company in the country, Buffalo Coal has also confirmed that Covid-19 has neither impacted production or product shipments at the company’s sites, nor have there been any significant negative impacts on, or disruption to, the company’s supply chain. The company is a coal producer with two mines in Kwa-Zulu Natal, South Africa. The two mines, Magdalena and Aviemore, have substantial coal resources. Its underground Magdalena mine has an estimated measured and indicated mineable coal resource of 50.29 million tonnes of in situ coal with an estimated volume of 33.52 million cubic metres and production capacity of 100,000 tonnes of saleable bituminous coal per month.

The 5,592-hectare Aviemore operation, on the other hand, is located four kilometres from Dundee. Its underground mine has an estimated mineable measured and indicated coal resource of 35.35 million tonnes of in situ coal with an estimated volume of 23.57 million cubic meters and production capacity of 45,500 tonnes of anthracite coal per month.

While the supply situation in the country seems to be uninterrupted, country’s thermal coal export shipments have registered a fall of 22% m-o-m basis in Feb’20 and stood at 5.37 MnT. India which is a key importer of South African thermal coal is currently witnessing demand slack amid ongoing pandemic further impacting the thermal coal export offers to the country.