South Africa must make Transnet work or economy will grind to a halt – Menor

JOHANNESBURG (miningweekly.com) – South Africa has no choice but to Transnet, and the country must get the state-owned logistics company working or the entire economy will grind to a halt, says Menar MD. Vaslat Bioglu Highlighted in an interview Mining Weekly.

Menar is a private investment company with actively managed mining assets including coal, anthracite, manganese, gold and nickel. (See also the attached Creamer Media video.)

“Transnet is not doing well with coal. However, they are identifying problems and taking initiative to solve them, the availability of locomotives is huge,” noted Bioglu, who is part of the mining industry and is working with Transnet to find solutions.

„We are in ongoing discussions with the team at Transnet about what needs to be done to increase the availability of engines and ensure the system continues to operate efficiently,” he said.

But Transnet’s inability to meet its targets meant that a significant amount of coal shipments had to be trucked and diverted to the port of Maputo in Mozambique, meaning South Africa’s world-class and multi-award-winning privateer could not be used. Department-owned Richards Bay Coal Terminal in KwaZulu-Natal.

However, Bioglu is confident that Transnet’s challenges are not insurmountable, and looks forward to seeing how South Africa’s BRICS summit will help Transnet secure the remaining supply of locomotives and parts from Chinese rail manufacturers. and services to those provided.

Projects are underway

Menar expects to create more than 430 jobs, with 86 employees already working in Mpumalanga. The first washed coal from Gukulet will be ready in the first quarter of next year.

The company finds that interest in investing in coal has not completely waned. Additionally, the 2022 price has made coal mining companies sufficiently stable with balance sheets and channeling financial resources towards reinvestment and expansion.

Once Menar’s Gugulethu project is fully operational, the company intends to develop – hopefully in the first or second quarter of next year – the fully licensed Tuso underground mine project in Bethal, Mpumalanga, which has a ten-year mine life.

Additionally, the Mngeni shaft at the company’s Zululand Anthracite Colliery is expected to produce its first coal in October, and at the Kangra operation, the Udumo and Belgarthen shafts hit record production last month, releasing 72,000 t of run-of-mine coal. From one of the sections.

The Bekezela project in Springs, once fully operational, will create around 800 jobs. „However, we are still waiting for the water use license to be finalized and hope to have it approved by the end of this year,” Bayoglu said.

Although coal prices have fallen compared to the first year of the Russia-Ukraine war, but are still higher than pre-Covid levels, Maynor has been able to raise significant revenue for growth opportunities.