The sanctions imposed on Russia for invading Ukraine could soon see a scramble for new sources of gas and coal, with South Africa being mentioned as an alternative producer of the combustible rock.
Reuters reports that Russia supplies coal to Europe, with Refinitiv pegging February seaborne volumes at 3.27 million tonnes.
“Again, this trade is likely to become poisonous for European utilities, meaning they will be scrambling to buy cargoes from the United States, Colombia, and South Africa,” reports Reuters.
“This is likely to tighten global seaborne coal markets, especially if Japan, which bought 1.18 million tonnes of Russian coal in January, seeks to buy from other suppliers.”
South Africa coal producers have been under pressure with mounting calls for the country to reduce reliance on the product to produce electricity.
Coal-fired power stations play a significant role in Global Warming.
South Africa Mineral Resources and Energy Minister Gwede Mantashe recently said: “It is no secret that the coal mining industry is faced with serious challenges arising mainly from the usage of coal for energy generation”.
South Africa is ranked among the top 10 countries globally in terms of coal reserves, sixth in terms of production, and fifth in terms of exports.
All indications are that South African coal producers stand to benefit in the short term from expected impromptu orders.
