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Transnet lifts force majeure on 9 coal exporters

State-owned logistics firm Transnet will this month begin talks on new medium to long-term contracts and has lifted force majeure on nine coal exporters with which it had reached an agreement.
A Transnet Freight Rail train is seen next to tons of coal mined from the nearby Khanye Colliery mine, at the Bronkhorstspruit station, in Bronkhorstspruit, around 90 kilometres north-east of Johannesburg, South Africa, April 26, 2022. REUTERS/Siphiwe Sibeko
A Transnet Freight Rail train is seen next to tons of coal mined from the nearby Khanye Colliery mine, at the Bronkhorstspruit station, in Bronkhorstspruit, around 90 kilometres north-east of Johannesburg, South Africa, April 26, 2022. REUTERS/Siphiwe Sibeko

In a statement on Tuesday, 5 July 2022, it said it would "consider its options" regarding an unspecified number of other coal exporters with which it had yet to reach a deal, despite what it said were "good faith negotiations".

Following a large-scale theft of copper cables, insufficient maintenance, and a lack of locomotives that crippled the company's freight rail network used by coal and iron ore miners to transport their minerals to port, Transnet in April declared force majeure.

The provision frees both parties of contractual obligations because of exceptional circumstances.

"To date, nine of the CEPs (Coal Export Parties) have signed the Deed of Amendment - this means that the force majeure on those parties has been lifted," Transnet said in a statement published on Tuesday.

The rail utility did not name the nine coal exporters and did not immediately respond to Reuters' request for additional information.

The new contracts under negotiation will replace current contracts, including long-term agreements that expire in March 2024.



SOURCE

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About Anait Miridzhanian

Reporting by Anait Miridzhanian; editing by Barbara Lewis.

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