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Exxaro Resources Reports 2% Decline in Thermal Coal Sale

Coal News - Published on Thu, 13 Aug 2020

Image Source: Exxaro Resources COVID19
South African coal miner Exxaro Resources Ltd said “As defined an essential service for providing coal to Eskom for electricity generation, as well as being an exporter, our coal operations continued operating at various capacities, while complying with the COVID-19 lockdown restrictions as implemented by the national government. Due to the impact of COVID-19 and the subsequent lockdown, many industrial customers in the domestic market have either reduced demand or stopped coal off take during April and May. In addition, coat exporters produced a sized coal product for the local markets due to very low export pricing. This resulted in an oversupply, negatively impacting domestic prices. ut is estimated that the seaborne market is oversupplied by at least 40Mt. We have seen the worst of the lockdowns, with negative impacts on the energy complex. The prices of both oil and gas have dropped to record levels and the API4 index price dropped to historically low levels of $4Ctft. Markets like Vietnam and Pakistan took advantage during this period of low prices to South African coal while the Indian demand fell below the normal off take. As governments across the globe try to revive their economies we do see a gradual uptick in demand in some markets.”

Coal Production
In '000 tonnesH1'20 FH2'19 AHoH
Thermal21 91222 384-2
Metallurgical1 21190734

Sales Volumes
In '000 tonnesH1'20 FH2'19 AHoH
Thermal22 48622 951-2

Source :

Posted By : Yogender Pancholi on Thu, 13 Aug 2020
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