Transnet increases rail and port capacity for emerging miners

IN a bid to transform the mining sector, Transnet says it is implementing measures to increase capacity allocation in rail and ports for emerging miners.

Announcing the move on Monday after meeting with various stakeholders, the State-owned entity said the initiative aims to reduce barriers to entry and improve the ease of doing business.

‘Transnet met with emerging miners and other key stakeholders in the sector, including the Department of Mineral Resources and Energy (DMRE) and finance institutions to present the initiative, which applies to customers in domestic and export coal, iron ore, manganese, magnetite, chrome and ferrochrome.

‘Over a phased period, Transnet will implement increased capacity allocation to these miners, with a 70/30 split between major and emerging miners expected from 2027.

‘The implementation will differ corridor by corridor,’ said Transnet spokesperson Ayanda Shezi.

The minimum requirements for emerging miners to qualify for capacity allocation includes a valid mining right issued by the DMRE, and validated mining activities.

Miners must have access to port capacity prior to applying for rail capacity, and access to a siding to accommodate loading of a train and minimum credit and legal requirements that take into account the stage of the entity.

In 2021, junior coal miners contributed 3.5 million tonnes to Richards Bay Coal Terminal (RBCT) exports. The terminal allocates four million tonnes to emerging and junior coal producers through the DMRE-supported Quattro Scheme.

The scheme aims to facilitate transformation in the coal mining industry by enabling emerging and junior coal producers, actively producing export quality coal to have access to the export market through RBCT.