Petmin signs anthracite export capacity deal

Petmin (PET) has signed a renewable five year agreement which will enable it to export up to 600,000 tonnes of metallurgical anthracite a year from Grindrod Terminals Kusasa dry bulk facility at Richards Bay.

27 Feb 2012

Petmin signs anthracite export capacity deal

The agreement, effective from 1 February 2012, gives Petmin the capacity to ship its expanded anthracite production from the Somkhele mine 85km north of Richards Bay.

Under the terms of the agreement, Petmin has been allocated 45,000 tonnes of exclusive stockpile and an indicated vessel loading rate of 12,000 tonnes per day.

The Grindrod facility replaces Petmin's previous throughput arrangements at Richards Bay.

Somkhele is increasing production from its current 535,000 sales tonnes per annum to in excess of 1.2m tonnes annually. Long term sales contracts are already in place with domestic and international customers.

The mine produces anthracite with low phosphorous and sulphur, and high vitrinite content, for export via Richards Bay (55% of production in 2010/11) to iron ore pelletizing and sintering markets mostly in Brazil, and for the South African ferro alloy industry (45% of production in 2010/11).

Anthracite produced by Somkhele is transported by road from Somkhele to Richards Bay, and to domestic customers.

The company said the operational update is not related to the cautionary announcement issued on 9 January 2012 and renewed on 20 February 2012.

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Source: I-Net Bridge

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