In 2015 coal prices dropped significantly, only to increase in 2016 by 50%. In 2018, coal prices increased by almost 20% from 2017. Key drivers for the movement in the international coal price are:
An increasing demand for coal in the Southern African inland market, which is required to meet the new wave of industrialization in Africa
India has become Southern Africa’s biggest coal customer, focusing on lower-grade RB3 coal
Legislative restrictions in China affecting global coal demand.
A series of new coal-based projects are being planned in several African countries to meet the increasing energy demand.
Maatla Resources' Mmamabula Coal Mine will produce high-grade coal for the export and regional coal market. The company has received expression of interest to produce an RB3 product of Peas, Nuts and Duff.
Mmamabula Coal Mine is well suited to produce sized coal for the regional coal market. The mining project is in close proximity to existing railway infrastructure and will produce sized coal for:
Cement and lime producers in South Africa
Hospitals and general boiler applications
The mine has a distinct distance advantage over South African coal mines to the cement and lime industry in the Northern Cape.