By Reuters
Global thermal coal producers are expected to curtail output as low prices for the fossil fuel persist amid an uncertain economic outlook, South African coal miner Thungela’s outgoing CEO July Ndlovu said on Monday.
South Africa’s top thermal coal exporter reported an 80% slump in its profit to 248 million rand ($14 million) in the six months to June 30, mainly due to lower prices for the fossil fuel.
Thungela said geopolitical tensions and rising tariffs were significantly disrupting global supply chains and constraining economic growth, hitting coal demand and prices. Neither the company nor Ndlovu elaborated.
Thermal coal prices have also come under pressure from a global shift away from the polluting fuel to cleaner energy sources, as well as increased domestic production in top import markets China and India.
The low prices could see further cuts in output after major producers in Indonesia and Colombia slowed down production while Australia’s production was
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