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Richards Bay Coal Terminal: Media Release 15/04/10
Media releases
15 April 2010
After several months of constructive discussions, Richards Bay Coal Terminal (“RBCT”) and South Dunes Coal Terminal (“SDCT”) have successfully found common ground by concluding discussions regarding SDCT’s rights to export coal from RBCT.
A formal agreement, to be ratified by non-Phase V RBCT shareholders will see SDCT commencing the export of coal from RBCT shortly.
SDCT is the largest participant in RBCT’s Phase V R1.2 billion expansion project.
Raymond Chirwa, Chief Executive of RBCT, says: “We are delighted to welcome SDCT as a valued coal exporter from RBCT. As an integral Phase V participant, SDCT adds to the much needed tonnage in reaching our target of exporting 91 million-tons of export coal per annum, as we continue to provide a valued link in South Africa’s coal export chain to the benefit of all stakeholders.”
SDCT’s rights to export coal will be determined by the rate at which Transnet Freight Rail (TFR) actually provides rail freight tonnage to all RBCT exporters. TFR owns and operates the rail line connecting the various coal exporters’ coal mining operations with RBCT.
Trevor McGiddy, CEO of SDCT, says “the settlement is a compromise on the part of both parties and like all good compromises neither party is particularly happy. However, SDCT is satisfied the agreement is the best option from a business perspective and the result is the most practical and realistic resolution. The shareholders of RBCT, including the new entrants, can now concentrate on working constructively with TFR to increase the rail capacity to RBCT and enable South African exporters, especially the new empowered exporters, to participate more fully in the growing global coal market”.
RBCT has further created 9 million-tons per annum of export expansion capacity in terms of Phase V, increasing the RBCT terminal export capacity from 72 million-tons per annum to 91 million-tons per annum. All of the Phase V capacity will be allocated to new empowered entrants, as and when the respective agreements are concluded. In addition to exporting coal from empowered producers, RBCT is, in its own right, a level 3 contributor in terms of the Broad-Based Black Economic Empowerment Act.
Chirwa says: “Looking ahead, we are committed to growing sustainable and efficient coal exports as we strive to lower the cost base and invest in long term plant recapitalization projects.”
RBCT exported 61.14 million tons of coal last year, with approximately 30% into the Indian market. Its exporters have initiated exports to China.
RBCT has resolved to officially commission its Phase V project by 1 May 2010.
Issued by: FD Media & Investor Relations
Ravin Maharaj
+27 11 214 2400
+27 (0) 83 447 5158
Zama Luthuli
Corporate Affairs Manager
RBCT
+27 35
904 4911
Trevor McGiddy
SDCT
+ 27 83 627 7875
On behalf of: Raymond Chirwa, CEO, Richards Bay Coal Terminal