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Richards Bay Coal Terminal: Phase V Overview
Phase V Expansion
| Phase V expansion will enable BEE coal exporters to expand their global footprints in coal exports.. |
In September 2006, the Directors and Shareholders of RBCT announced the commencement of the Phase V Expansion Project which will see the terminal expand to 91 million tons. The estimated cost of the project is R1.1 billion and the expansion is expected to be completed by the end July 2009. Included in this expansion is a fifth tandem tippler for offloading, increased stockyard capacity, a stacker/reclaimer, supporting infrastructure and an extension of the dedicated quay to six berths measuring 1,9 km. Two water recycling dams will also form part of the project.
In terms of the expansion project,
- Special provision has been made to encourage a new generation of coal exporters by earmarking 4 million tons per annum for emerging Black Economic Empowerment (BEE) exporters.
- South Dunes Coal Terminal, which will be a two thirds BEE controlled company, will take up 6 million tons per annum of the expansion. By incorporating a number of smaller coal exporters under the umbrella of SDCT, there is an opportunity for coordinated BEE participation in the expanded terminal.
- During 2007 RBCT celebrated a historical milestone when we announced the eight successful applicants in respect of the 9 million tons of coal export throughput capacity of the Phase V Expansion that was made available to aspiring Black Economic Empowerment (BEE) exporters. This was made available through new shareholding and commercial usage agreements. Emphasis was placed on BEE beneficial ownership in the producing mine.
| Shareholding | |
| – Arm Coal | 3.20 Mt |
| – Exxaro Coal | 2.50 Mt |
| – Mmakau Mining | 0.35 Mt |
| – SDCT | 6.00 Mt |
| – Tumelo Coal | 0.60 Mt |
| – Umcebo Mining | 1.00 Mt |
| – Yomhlaba | 0.50 Mt |
|
Commercial agreements |
|
| – Mbokodo | 0.50 Mt |
| – Worldwide | 0.35 Mt |
|
– Total |
15.00 Mt |
Phase V project summary
- Cost R1.176 billion Commissioning July 2009In line with lowest cost coal port expansions globally
- Underwritten by existing shareholders
- Shareholders relinquish their pre-emptive rights to the expansion capacity
- Could bring c. R15bn pa foreign currency into South Africa
- Could earn c. R1bn pa for Transnet Freight Rail
Further expansion beyond 91 million tons per annum to meet long term demand will be dependent on feasibility and export demand.