Media releases

01 December 2006

26 companies apply for increased coal export capacity at Richards Bay Coal Terminal

JOHANNESBURG, 1 DECEMBER 2006 – Twenty-six coal mining companies have applied to take up the right to export a portion of the 9 million tons per annum capacity which has been made available through the Phase V expansion at the Richards Bay Coal Terminal Company Ltd (RBCT).

Current and potential coal exporters had until 5pm yesterday to submit their tender documents to Alexander Forbes, the independent adjudicator appointed by RBCT to oversee the tender process.

“The process of evaluating each application now commences, with the adjudicator subjecting each application to a review, verification and re-evaluation process. Successful applicants will be announced within the second quarter of 2007,” says RBCT Executive Chairman, Kuseni Dlamini.

“As we have indicated from the beginning, RBCT is committed to the transformation of the South African coal export industry and hence, in the event of over-subscription for the 9 million tons and all applications being equal, the empowerment status of the applicants will be the overriding ranking criteria.”

By 2009 when the project is expected to be completed, the terminal will have expanded from its current 72 million ton per annum capacity to 91 million tons per annum. The expansion was deemed necessary in order to meet the short to medium term capacity requirements of export coal producers. Of the 19 million ton additional capacity, the other 10 million tons will be made up in the following manner:

4 million tons per annum has been earmarked for emerging BEE exporters with modest export volumes of up to 250 000 thousand tons per annum,
6 million tons per annum will be taken up by South Dunes Coal Terminal (SDCT), which will be a two thirds BEE-controlled company.
“Not only will RBCT’s expansion be supportive of transformation within our country but it will also increase South Africa’s share of the global coal market and, more importantly, enable BEE coal mining companies to globalise their market footprints”, Dlamini added.

RBCT is the single largest and most efficiently run export coal terminal in the world. On the 19th September this year it broke an all time world record by exporting 409 809 tons of coal within 24 hours. About 3 500 jobs would be created as a result of the Phase V expansion project and more sustainable jobs will be created on the upstream parts of the coal mining value chain as more coal mines come on stream.

“RBCT plays a key role in enhancing the global competitiveness of SA’s export coal sector and to this country’s growth and development objectives. This expansion will increase our contribution to SA’s export earnings and thus contribute to reducing SA’s trade deficit,” Dlamini added.

FOR FURTHER INFORMATION PLEASE CONTACT:
Roz Thomas
Corporate Communications Consultants (Pty) Ltd
Tel:+27 (0) 11 783 8926
Fax: +27 (0) 11 783 7608
Email: rozt@corpcom.co.za