Exxaro believes it could export more coal if Transnet improves rail
· Citizen
Exxaro Resources highlighted what is needed and what is missing for it to double its coal exports at its 2026 Capital Markets Day on Monday.
According to Exxaro, its main constraint is not a lack of coal reserves or market demand, but inadequate rail logistics.
Visit asg-reflektory.pl for more information.
Speaking to attendees, CEO Ben Magara said exports from the Grootegeluk mine in Limpopo could rise substantially if performance improved on the rail corridor between the Waterberg coalfield and the Richards Bay Coal Terminal.
Exxaro coal export performance
According to the group’s 2026 Capital Markets Day presentation, coal production supply is falling faster than demand. Exxaro is operating five coal mines.
Caroline Shirindza, executive head of coal at the mine, said that from 2035, supply will increasingly depend on new investment rather than existing mines to maintain supply. She cautioned during the presentation that without investment in developing new mines, a decline in production will result in a near-term export market gap.
“South Africa’s thermal coal mine production is declining,” reads her presentation. “Additional volumes are required from 2032 to meet export demand.”
Exxaro’s greatest coal mine
Shirindza, in her presentation, described Grootegeluk as a defensive bedrock with substantial endowment and export optionality.
Grootegeluk is the only coal mine in Waterberg, which hosts more than 50% of the country’s remaining coal reserves, and is the world’s largest coal beneficiation complex.
She highlighted that Mpumalanga offers portfolio flexibility and export leverage, with four established coal mines and “high-quality beneficiation facilities.” However, she noted that there needs to be improvement in logistics for the coal mines to thrive.
“Coal remains the foundation of Exxaro’s earnings, cash generation and sustainable returns,” she said.
The future of coal
News24 reported that Waterberg has become increasingly important to Exxaro’s long-term plans.
“Our growth is really about logistics,” said CEO Magara. “If Transnet continues to improve, we expect that the coal industry [producing from mature mines, largely in Mpumalanga] is not able to meet that [full export] entitlement, and Exxaro will be more than able to fill some of the gaps that would exist.”
Exxaro continues to work with Transnet and other industry participants to improve performance on the line and unlock additional capacity.
Magara reiterated Exxaro’s commitment to being a major coal player.