CAPE TOWN (miningweekly.com) - The R1,2-billion Phase V development at Richard’s Bay Coal Terminal was on track to be commissioned in July this year, COO Raymond Chirwa said on Thursday.

Addressing delegates at the South African Coal Exports Conference in Cape Town, Chirwa explained that RBCT was now in the final phase of construction, testing and commissioning.

The Phase V expansion project would increase the RBCT's throughput capacity from 72-million tons a year to 91-million tons a year.

The Phase V development project, which would cater for an expansion of 19-million tons a year, was divided into three elements: four-million tons a year would be allocated to emerging black economic-empowerment miners with modest export volumes, six-million tons a year would be allocated to the South Dunes Coal Terminal, and nine-million tons a year would be allocated to miners through a subscription process.

With regard to the subscription process, Chirwa stated that the RBCT had received 26 applications for access to the Phase V development to date, but only 18 of these had been deemed eligible.

Chirwa explained that these 18 applicants had been allocated 8,95-million tons of the new expansion but 10,05-million tons still had to be catered for.

He said that the RBCT had already undertaken preliminary investigations for growth beyond 91-million tons.

It was envisaged that the RBCT could expand its capacity to 110-million tons a year in the long-term.
However, Chirwa warned that such expansion of the terminal was dependent upon an economically sustainable business case to meet future demand.

In addition, it was essential to unblock logistical constraints that were prohibiting the growth in coal export through the RBCT.

In this regard, the RBCT had witnessed declining exports since 2005.

In 2005, the RBCT exported a record 69,2-million tons, which was 96% of the terminal’s capacity. However, since this date exports had declined to the extent that only 61,8-million tons was exported last year.

The declining exports was primarily the result of outside logistical challenges as Chirwa stated that no significant internal challenges at the RBCT had affected exports.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.