The Public Investment Corporation (PIC) has increased its shareholding in coal miner Thungela Resources from 8.033% to 9.925% on April 8.
This follows what Thungela CEO July Ndlovu earlier in April described as a “comeback for coal” as European demand rises.
As European utilities are seeking to mitigate shortages of natural gas from Russia and curb fuel imports from the country overall, coal has become the fuel of choice amid the Ukraine war.
Ndlovu told stakeholders during the Coalsafe conference that Europe’s coal burn rate was currently the highest it has been in 30 years.
Thungela’s share price has increased more than 90% since Russia invaded Ukraine on February 24. Simultaneously, the thermal coal price has increased about 56% since the beginning of the year.
The company produces thermal coal from seven mining operations in South Africa.