South African thermal coal export industry - another golden goose

Journal Article · Sun Jan 01 04:00:00 EST 1989 · Materials and Society; (USA)

OSTI ID:6936446

Versluis, J J ^[1]

---

1. Projects and Strategy, Mining, Gencor, Marshalltown (South Africa)

The international coal export industry achieved significant importance after the various energy crises of the seventies. The South African thermal coal export industry participated in the resultant high growth, and enjoyed spectacular growth because of various factors, inter alia: the existence of a highly efficient and reliable coal export terminal at Richards Bay, a reputation of reliability as suppliers, the consistency of the qualities of its export products, very important, the presence of a supportive, dynamic and export-business oriented government. South African producers enjoyed the position as the world's lowest cost producers of quality thermal export coal. This factor allowed South Africa to first enjoy large profits, and then when the threat of sanctions became a reality, to be able to absorb a political discount forced by consumers, to maintain its market share in the international thermal coal export market. Recent developments have caused the profit margins in world coal exports to diminish drastically, and Australia is emerging as a threat to the South African position as the lowest cost producer of export coal. There has been a major turn around in the approaches of the Australian authorities and that of the South Africans, vis-a-vis rail tariffs. The rail tariffs imposed by the South African Transport Services have increased by 114% since April 1987, whereas in New South Wales for example, rail tariffs were decreased by 5% in January 1984, whereafter they were frozen until the end of 1987. Presently, actual decreases are again being awarded in New South Wales and Queensland. This article addresses the background to this problem, and the major issue facing the future South African exports - can they maintain their cost competitiveness

• OSTI ID: 6936446
• Journal Information: Materials and Society; (USA), Journal Name: Materials and Society; (USA) Vol. 13:1; ISSN 0146-6399; ISSN MSOCD
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
015000* -- Coal
Lignite
& Peat-- Economic
Industrial
& Business Aspects
AFRICA
AUSTRALASIA
AUSTRALIA
BITUMINOUS COAL
BLACK COAL
CARBONACEOUS MATERIALS
COAL
COAL INDUSTRY
COMPETITION
COST
ECONOMIC GROWTH
ECONOMICS
ENERGY SOURCES
ENERGY SUPPLIES
EXPORTS
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INDUSTRY
LAND TRANSPORT
MATERIALS
NEW SOUTH WALES
QUEENSLAND
RAIL TRANSPORT
RAILWAYS
RELIABILITY
SOUTH AFRICA
TAXES
TERMINAL FACILITIES
TRANSPORT