EXPORT COAL
MARKET
International coal prices dropped in 2020 due to COVID-related demand depression. However, things have changed significantly with international prices rising to all time highs in 2021. Especially in South Africa, high quality coal will be even harder to source in the coming years. Key drivers for the movement in the international and the South African coal prices 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.
-
Supply risk due to lack of exploration and fragmentation of producers in South Africa
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 branded coal for the export and regional coal market. The company has received numerous expression of interest to produce RB2 / RB3 products of Peas, Nuts and Duff.
REGIONAL COAL
MARKET
Mmamabula Coal Mine is well suited to produce branded 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
-
Paper Mills
-
Chemical Industry
-
Ferro Alloys Industry
-
Brickworks
-
Breweries
-
Sugar Estates
-
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.
The ability to produce low phos / low ash products, as well as the charring characteristics of Maatla's products enhance Maatla's branded coal to clients approach.