Minergy's coal lures local, international attention
Tuesday, February 07, 2023 | 960 Views |
Coal mining PIC: PHATSIMO KAPENG
Giving an update on the market, Minergy CEO Morné du Plessis said their objective is to secure additional long-term export seaborne offtake agreements since the logistics and coal qualities have been established. “At the same time, we assess funding options, including enquiries to place approved equity, to reduce debt and consider expansion opportunities,” he said.
For the six months, Minergy sales averaged close to 68,000 tonnes per month which includes the downtime following the general December shutdown period. According to the CEO, volumes are roughly 53% higher, while pricing has been exceptional and approximately 66% higher than the comparative six-month period. “During these six months, roughly the same volume of coal was sold during the entire 2021 financial year and sales have already reached 70% of the full 2022 financial year volumes,” he said. Minergy’s preferred evacuation route for seaborne exports is through the Walvis Bay Port where they export about one-third of their coal.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...