Thungela poised to spend R3.9bn capital in South Africa

Thungela Resources active in Mpumalanga.

Thungela CFO Deon Smith.

18th June 2024

By: Martin Creamer

Creamer Media Editor


Font size: - +

JOHANNESBURG ( – Johannesburg Stock Exchange-listed Thungela Resources is poised to spend R3.9-billion worth of capital in South Africa going forward.

An estimated R1.3-billion of this capital expenditure (capex) is scheduled to be spent in the next six months and a further R800-million in the final six months of the company’s financial year to end June 2025.

Of the initial R1.3-billion, R800-million is expansionary capex for the Elders and Zibulo North Shaft projects, and R500-million is sustaining stay-in-business capex.

The remaining R1.8-billion will be spent to complete the life extension projects at Elders Colliery, near Bethal, and the Zibulo Colliery, near Ogies. Both Mpumalanga-located projects are on schedule and on budget.

“These investments secure the future of our South African operations,” Thungela CFO Deon Smith outlined in a pre-close stock exchange news service announcement covered by Mining Weekly.

The full transitioning of Thungela’s South African coal marketing activities from Anglo American Marketing is scheduled for completion on July 1. In addition, the team, based at Thungela Marketing International in Dubai, markets coal from the acquired Ensham mine in Australia.

In the first six months of this year, South Africa’s Richards Bay benchmark coal price averaged an 18%-lower $99.71/t. Moreover, discount to the Richards Bay price is 1% higher than last year’s 14%.

Export saleable production from South African operations in the six months to the end of this year is expected to be 6.2-million tonnes, which, on an annualised basis, remains within the guidance range of up to 12.5-million tonnes.

Free-on-board cost per export tonne excluding royalties for the South African operations for the first half of the financial year is expected to be at the lower end of the guidance range of R1 170/t to R1 290/t.

Should Transnet Freight Rail’s (TFR's) performance remain at the expected 46-million tonnes on an annualised industry basis, Thungela expects on-mine inventory to increase 1.1-million tonnes to the end of the year.

The South African coal industry, including Thungela, is continuing to support TFR in the procurement of critical locomotive spares and reports that the State-owned rail utility has made good progress installing the compressors and batteries that have been delivered.

“We expect to see improvements related to the installation of these spares and other initiatives from 2025,” said Smith.

Edited by Creamer Media Reporter




Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...


Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/07/2024)
12th July 2024 By: Martin Creamer
Magazine image
Magazine round up | 12 July 2024
12th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.326 0.388s - 192pq - 2rq
Subscribe Now