SA’s Transnet to resume coal, iron ore exports following amendment to disaster regulations

Richards Bay Coal Terminal

COAL and iron ore exports will recommence through Richards Bay following amendments to the Disaster Management Regulations, said Transnet.

The state-owned logistics company would also re-start the handling of other non-essential goods including containerised goods through the port of Durban.

This amendments were approved by the Department of Co-operative Governance and Traditional Affairs on April 2, said Transnet in a statement.

“In addition to the list of goods and services that were declared as essential, there have been revisions and exemptions created by Government for certain goods and services, which are critical to the health of the national economy and its revitalisation post the crisis,” the company said.

“As a result, thereof, it has now been formally declared that transportation (including handling) of all cargo from ports of entry to their intended destination is no longer prohibited,” it said. This means that Transnet will adjust a number of operations subject to approval by various Departments including the Department of Mineral Resources and Energy.

Operations that would be allowed to start up include the heavy haul rail and ports export system from the Northern Cape to the Port of Saldanha; and domestic and export coal and other general freight business cargo through the Port of Richards Bay.

“Transnet’s plea during these uncharted times is that customers take all necessary measures to protect Transnet staff when interfacing with customer’s operations,” it said.

African Rainbow Minerals said on Thursday it would export iron ore at 40% of normal capacity supplied from stockpiles during the Government-ordered 21-day lockdown aimed at reducing the spread of the deadly COVID-19 virus.

The group said in an update that whilst its iron ore and manganese, platinum group metal, and nickel mines had been placed on care and maintenance, the exportation of iron ore was now permitted.

As a result, its iron ore and manganese subsidiary, Assmang, had received authorisation to operate its load-out stations at Khumani and Beeshoek mines “… in order to continue loading iron ore from the mines’ respective stockpiles”, it said.

Transnet, the state-owned freight and logistics company, had “… reactivated the rail and port export system” from the Northern Cape province to Saldanha in the Western Cape. This would support about 40% of normalised iron ore volumes for the week starting March 30, said ARM.

“Transnet plans to ramp up volumes for the remainder of the lockdown period depending on availability of rail and port services,” ARM said. “The iron ore operations have sufficient inventory to load for the remainder of the lockdown period,” it said.

Exxaro Resources announced last month that it would continue with coal deliveries to Eskom – another essential service – but that it would also seek to export coal where possible, especially as the foreign exchange was important to the country.

Anglo American announced on March 27 that the Sishen and Kolomela iron ore mines, owned by Kumba Iron Ore which the UK group controls, would continue to operate at 50% of total workforce.