The efficiency and returns from the Australian mine up to now justify Thungela’s technique of rising via acquisitions, Ndlovu informed Reuters in an interview.
“We’re at all times on the lookout for alternatives and coal on the whole, together with coking coal, is of curiosity to us,” Ndlovu mentioned.
On the Ensham operation, Thungela is weighing plans to spend money on new coal manufacturing, due to “further potential given the scale of the useful resource”.
Whereas most banks and financiers are actually shunning funding new coal manufacturing, Ndlovu mentioned Thungela, which was spun out of Anglo American in 2021, was capable of fund its personal improvement initiatives.
“If we do establish engaging alternatives, and we imagine that they’re extra worth accretive and improve shareholder returns, we should always have the ability to fund these,” Ndlovu mentioned.
In South Africa, Thungela expects coal exports to rebound from subsequent 12 months as rail bottlenecks ease.
The nation’s coal shipments fell to a three-decade low of about 47 million tons per 12 months in 2023 as state-owned ports and rail firm Transnet’s capability was restricted by lack of locomotives and spares, in addition to cable theft and vandalism of infrastructure.
Coal shipments may rise to greater than 50 million tons per 12 months from 2025, Ndlovu mentioned. Transnet’s rail unit moved about 76.47 million tons of the fossil gas in 2017.
“The worst might be behind us,” Ndlovu mentioned on a media name. “The constructing blocks are in place, subsequently it stands to motive that there will likely be enchancment.”
South Africa’s rail disaster has curbed coal shipments for corporations together with Thungela, Exxaro Sources and Glencore, forcing some miners to truck the fossil gas by street and to make use of various ports in neighboring Mozambique.
The shortage of rail capability has additionally hit earnings for producers at a time when costs for the gas have softened. Thungela mentioned its revenue within the six months via June plunged 61% to 1.2 billion rand ($67.3 million).
($1 = 17.8195 rand)
(By Nelson Banya and Felix Njini; Enhancing by Conor Humphries)