Benchmark coal prices have dropped 70% since peak in 2022 Labor union concerned over lack of trains to export minerals
Coal in South Africa, which has the largest proven reserves of the fuel on the continent, is at risk of becoming stranded following a plunge in prices and collapse of the nation’s rail network.
Also read: South Africa is still the champion of critical minerals
Prices for the dirtiest fossil fuel have slumped about 70% after reaching a record in 2022. A train collision this week all but stopped supplies to the Richards Bay Coal Terminal for exports, adding to the struggles of freight operator Transnet SOC Ltd. Plunging prices have narrowed the arbitrage of shipping the mineral to ports on trucks.
Source: Bloomberg
