Exxaro flags continued rail dysfunction even as it eyes uptick in coal demand

European sanctions against major producer Russia are expected to take effect in August, but logistical constraints continue to weigh on sales

Exxaro, one of Eskom's largest coal sources, says it continues to feel the pinch of dysfunction on Transnet’s rail network, even as it eyes an uptick in demand from Europe as sanctions on Russia kick in.

Exports are expected to fall 27% to 2.59-million tonnes in the first half relative to the prior six months, with Exxaro saying its export guidance now includes 1.4-million tonnes at risk, reducing the original 7.6-million-tonne export guidance for the full year to 6.2-million tonnes.

The Minerals Council SA said earlier in June that the industry suffered an opportunity cost of R50bn in 2021. Deliveries are measured against the capacity of the rail and port infrastructure and rolling stock. Exxaro, however, has been benefiting from record prices for coal in 2022, stemming from Russia’s invasion of Ukraine, and

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