Lisa Steyn | Coal logistics crisis is a few dollars away from catastrophe | Business

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While a surge in the price of commodities has been a boon for many of SA's miners, the cost of railway dysfunction could now soon be seen in stark terms as prices fall to levels that won't justify the use of more expensive trucks, writes Lisa Steyn.

Just as coal miners had begun to accept their fated terminal decline amid a global energy transition, coal prices started taking off last year, climbing to levels that could never have been predicted.

The benchmark coal price - for the highest quality steam coal – began creeping up from $50 a tonne in mid-2020. A year later, it had exceeded $100 a tonne, and by March 2022, it had reached all-time highs of more than $420 per tonne.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.

 

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