MCM seals 150,000t EU export deal

| Friday October 25, 2013 16:11

 

The colliery completed its P1.5 billion expansion last year, boosting its production from approximately one to 2.8 million tonnes of coal per annum. While the expansion was primarily targeted at greater supplies to its main customer, the Botswana Power Corporation, the colliery was also left with greater export capabilities.

This week, Morupule Coal Mine officials told BusinessWeek that besides the EU market through Durban, markets had also been found in Zimbabwe and South Africa.

“Whilst the bulk of our coal is currently sold locally, we appreciate that external markets present an opportunity for further business growth,” the coal mine said in response to written enquiries.

“The only challenge is on logistics of transportation.”

At present, Durban and Maputo are the only two proven coal export routes, the latter running through Zimbabwe and Mozambique. Local energy developer, African Energy Resources, pioneered the Mozambique route last year with a trial run lasting three days over the 1,300 kilometre journey.

While the coal mine did not disclose further details on its export deals, earlier in the year, officials revealed that an agreement had been struck with a locally registered company, African Star Minerals, for the supply of large volumes of export coal.

Botswana Railways recently reported that it was providing 300 wagons for the coal’s transport, with an initial run of two trains per week. The railway parastatal said it planned to ramp up the service to between five and 10 trains a day.

The quantities Morupule Coal is currently exporting through Durban are believed to be a drop in the ocean compared to the capacity of the railway line available for use. African Energy estimates Botswana’s rail capacity through South Africa at approximately 10 million tonnes per annum and expects Morupule’s exports to increase in the next year.

“This (Morupule exports) is a milestone achievement for Botswana, placing it amongst the coal exporting nations of the world,” the Australian firm said in a recent quarterly report.

For their part, Morupule officials said efforts were ongoing to secure new markets to develop the export business.

“Morupule Coal Mine’s marketing team is constantly looking for new ways and partnerships that could bring growth to our business,” the mine’s statement reads. “We have a department dedicated to looking for new markets and for looking after those markets we have thus far captured.”

The colliery has said its search for export markets would not interfere with its ability to supply the Botswana Power Corporation, as the external clients required coal of a different quality.