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South Africa: Industrial action in mining industry may spread to coal sector
“The truckers’ strike has hit deliveries of diesel and explosives to the mines and massively hit the domestic coal market, supply to sugar and cement firms who run their own coal-fired boilers,” industry sources said.
“You may see a few ‘force majeures’ from juniors using the smaller ports who depend on trucks rather than rail,” he said.
Logistics group Transnet said there had been no material impact from the truckers’ strike on coal transport by rail.
BECSA, which moves all its coal by rail, and another mining major Anglo American, said they had not been affected by the transport strike.
But state-owned utility Eskom, which generates power mostly from coal, said it moves up to 30 percent of its fuel by truck. Disruption would put Eskom under strain as it is struggling to meet demand, trying to avoid a repeat of the 2008 blackouts.
“There are five stations at risk of falling below their minimum days’ stock levels if the strike persists,” Eskom said.
