Sasol’s coal exports rose by 5% in the 2023-24 financial year (July-June), reaching 2.1 million tonnes (mn t) up from 2 mn t the previous year. This increase occurred despite a dip in the company’s saleable coal production, which fell to 30.2 mn t from 30.8 mn t the previous year and 31.8 mn t in the year ending 30 June 2022. The boost in exports was driven by higher production at the Thubelisha colliery and improved performance by Transnet Freight Rail (TFR).
Sasol’s mining productivity improved by 3% year-on-year to 983 tonnes per continuous miner per shift (t/cm/s), aligning with market guidance. The April-June quarter saw a 4% productivity increase, reaching 1,000 t/cm/s. However, overall coal production fell by 2% due to a reduction in mining sections and increased discards from the export beneficiation plant. The reduction in mining sections aimed to improve overall coal quality by merging walk-on/walk-off sections.
Sasol’s success contrasts with the national trend of higher coal production without increased export sales. South Africa’s coal production rose by 7% in May to 20.13 mn t, but TFR’s ongoing challenges meant no significant rise in national export sales. TFR railed 24.4 mn t in the first half of this year, suggesting an annualized run rate of 48.8 mn t, compared with full-year shipments of 47.7 mn t in 2023, according to data from Argus.
