Nuvei receives South African authorisation

Transnet, South Africa's state-owned port and rail freight operator, experienced a brief force majeure due to a power outage affecting the Coal Line section between October 10 and 11. The incident was caused by a power failure from state-owned utility Eskom, impacting train operations between Ermelo and Ogies. Service to Richards Bay Coal Terminal resumed on October 11 after a suspension on October 10.

The power failure resulted in a total loss of 21 Export Coal trains, equating to a volume loss of 174,300 metric tonnes. This follows an earlier derailment between Overvaal and Sheepmoor on August 21, leading to a double line closure and disruptions along the coal line. A separate derailment on June 8 impacted Lines 2, 3, 4, and the Empangeni line.

Dr. Andrew Shaw, Chief Strategy and Planning Officer at Transnet, stated that the focus on 61 million metric tonnes for 2026-27 and 70 million metric tonnes for 2028-29 remains reliable, as it is based on the existing plan. Market participants anticipated limited price impact from the latest incident, with steady demand and higher global seaborne prices seen as key market drivers.

A South Africa-based producer stated that the disruption resulted in a slight supply disruption but did not see any upward pressure on prices. Strong demand from the Asia-Pacific region, particularly India, which is the largest importer of South African coal, was noted. Indian sponge iron manufacturers, who had been inactive in the seaborne market, showed a significant revival in appetite for South African-origin coal post-monsoon restocking and curtailed domestic coal production. While the market waited for further clarity, no significant impact on prices was expected.