Shumba strikes coal deal with German firm

In a statement released yesterday, the BSE-listed company announced the execution of a binding Memorandum of Understanding (MoU) with HMS Bergbau Africa (Pty) Ltd, a full subsidiary of German-listed HMS Bergbau AG (HMS), which is a leading independent global trading house to its shareholders and the public in general.

Shumba managing director, Mashale Phumaphi noted that, despite political pressure to support non-fossil fuel sources, the company believed the global long-term outlook for thermal coal demand was promising, driven by the industrialisation of emerging economies and the need to secure reliable and cost-effective baseload power supply.