S. Africa’s Thungela Seeks More Coal Assets as Rail Woes Worsen
- Thungela is looking to acquire more overseas coal assets
- Shares slump as miner expects exports to drop for second year
A Transnet freight train transporting coal.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Thungela Resources Ltd. is seeking to buy more overseas assets, as rail bottlenecks hobble shipments by South Africa’s largest exporter of thermal coal.
Thungela — spun off from Anglo American Plc two years ago — posted record profit last year as European demand for coal surged following Russia’s invasion of Ukraine. However, the miner’s shares fell as much as 12% in London trading on Monday, after the company said it expects sales to drop for a second year as South Africa’s state-owned rail operator Transnet SOC Ltd. faces increasing problems on its main coal export line.