The Public Investment Corporation (PIC) has again increased its holdings in JSE-listed Thungela Resources to 11.22%.

This follows less than a week after having increased its shareholding in Thungela to 9.925% on April 8, from 8.033% previously.

Meanwhile, Thungela remains in discussions with Transnet regarding the contractual terms of long-term coal transportation agreements.

Transnet on April 8 notified coal export parties (CEPs) with which it has long-term coal transportation agreements that the factors previously communicated to the market regarding its inability to perform services at its stated system capacity – such as the ongoing legal proceedings relating to the irregular locomotive acquisition and maintenance contracts, as well as the vandalism rife on the coal line – continue and are beyond its reasonable control.

Transnet believes these circumstances will continue to detract from its ability to perform for at least the next six months.

Thungela states that Transnet has reiterated its commitment to continue to perform rail services and has recently confirmed its commitment to work with the CEPs and the Richards Bay Coal Terminal (RBCT) to optimise and improve its performance.  

The CEPs, including Thungela, are accordingly engaging actively with Transnet to clarify the contractual position and ensure the stability of coal deliveries to RBCT to continue to take advantage of the current strong market demand for South African coal, the company says.

“Through these engagements, Transnet has confirmed its intent to conclude an addendum to the agreements which Transnet believes will assist it in addressing certain factors affecting its performance, but reaffirmed its commitment to the existing material commercial terms and it is therefore unlikely that these developments would have any material commercial impact on Thungela,” the company says.

With coal rail services and export sales continuing, notwithstanding the ongoing discussions between the CEPs and Transnet, Thungela does not currently envisage this development to have a material impact on the group’s 2022 operational outlook.

Thungela says it continues to engage with Transnet to clarify its contractual position.