Thungela sees 44% jump in costs

South African coal miner Thungela Resources TGAJ.J on Monday flagged a 44% jump in costs while poor rail performance continues to curb exports, putting a dampener on first-half earnings expected to be strong thanks to high coal prices.

In a trading update, Thungela said it had curtailed production to mitigate the impact of “inconsistent” rail service by South Africa’s state-owned logistics firm Transnet, resulting in a 14% decline in export saleable production during the first half of 2022 compared to the same period last year.

Thungela said its free on board (FOB) cost per export tonne of coal, including royalties, is expected to be 44% higher at R1 124, compared to R782 rand in the first half of 2021.