South Africa’s Business Day reported 72 representatives from 52 potential applicants attended the first meeting late last week on Phase 5 of the port expansion. The meeting was held to clarify conditions for the 9 million tons available by tender to new exporters.
To qualify, applicants must show empowerment, proven mining capacity, rail capacity, and a bankable feasibility study if they do not already have a mine in production. The tender process is expected to be completed by April.
According to the RBCT, the expansion will be split with 9Mtpa open for tender with an emphasis on empowerment to facilitate the transformation of the South African coal export industry; special provision has been made to encourage a new generation of coal exporters by earmarking 4Mtpa for emerging BEE exporters; and South Dunes Coal Terminal, which will be a two-thirds BEE controlled company, will take up 6Mtpa of the expansion.
The expansion will cost R1.2 billion ($US157 million) and is expected to be completed by the end of the first half of 2009.
A significant part of the goods and services required by the project is intended to be sourced from local suppliers with preferential BEE procurement. During the construction period 3500 jobs will be created with further sustainable job creation being realised through anticipated developments in the coal mining industry.
RBCT currently has capacity to export 72Mtpa and will expand to 91Mtpa. Its shareholders include Anglo American, Eyesizwe Coal, Ingwe Collieries, Kangra Coal, Sasol Mining, Total Coal SA and Xstrata Coal.
