The Botswana coal industry is ripe for development.
Contributing factors are:
- The international coal market with Richards Bay Coal Terminal shareholders maximising export volumes.
- End of life of producing mines in South Africa generally, with no significant brownfields expansion or greenfield projects underway.
- Production cut back or closure of marginal mines in South Africa.
- A 1.8 million tonnes per annum increase in rail capacity from the South African Waterberg coalfields to Richards Bay Coal Terminal which is diverting more coal into the seaborne thermal coal market, and away from the regional market. This capacity is planned to be further increased by 4.2 million tonnes per annum.
- An increase in exports of more than seven million tonnes per annum from Richards Bay Coal Terminal is forecast by 2019 due to continued strength of international coal prices.
- The regional market has seen a significant reduction of coal availability, with prices rising significantly during 2017/2018.