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Eskom and Transnet woes drag coal sector down



Thungela’s 2023 year-end results will be out next week, but we already have a pretty good idea of what’s coming.

Exxaro’s results for the year to December 2023 tell the story of a coal sector battling what economists refer to as structural bottlenecks, mainly Eskom and Transnet.

Fix these two state-owned companies and the results would without doubt have been a whole lot better. Exxaro’s coal exports are now at their lowest levels since 1992.

ALSO READ: New Transnet boss is a mover and shaker

SA had to watch the commodities boom of the past few years from afar, unable to fully participate because Transnet couldn’t ship the required volumes, and Eskom’s declining coal demand mirrored the load shedding schedule (hitting an all-time high of more than 330 days in 2023).

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