Coal producer, Thungela saw their profits plunge by 69% in Q1
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GUEST - July Ndlovu - Thungela CEO
South African coal exporter Thungela saw profits plunge by 69% in the first half of the year on weaker coal prices and logistical constraints. The company, which is the country’s largest shipper of coal for electricity generation, posted record income last year as European demand for the fuel surged after Russia’s invasion of Ukraine, causing prices to reach $450 a ton.
Coal is now trading at less than a third of that peak. Thungela and other miners have also faced severe bottlenecks in rail services run by state-owned Transnet, with poor management, idle locomotives, cable theft and ageing equipment among the issues weighing down coal shipments.
South African coal exporter Thungela saw profits plunge by 69% in the first half of the year on weaker coal prices and logistical constraints. The company, which is the country’s largest shipper of coal for electricity generation, posted record income last year as European demand for the fuel surged after Russia’s invasion of Ukraine, causing prices to reach $450 a ton.
Coal is now trading at less than a third of that peak. Thungela and other miners have also faced severe bottlenecks in rail services run by state-owned Transnet, with poor management, idle locomotives, cable theft and ageing equipment among the issues weighing down coal shipments.
