SA Coal Looks To Lift Its Export Capacity.

SA Coal will use its full rail allocation of 277 000 tons to the Richards Bay Coal Terminal this year, the company told the Stock Exchange News Service.

The terminal, Africa’s biggest coal export facility, is capable of shipping 91-million tons of coal a year.

Adding extra capacity would "allow the group to achieve a more sustainable operation ".

SA Coal’s shares were suspended in early 2009 after its results for 2008 were not released on time. Its shares only started trading again on March 25, this year.

At the time of the suspension, auditors raised doubts about the viability of the business as a going concern, needing assurance that it could fund operations in the short term. The company’s Ilanga and Umlabu mine, near Witbank in Mpumalanga province, were placed on "care and maintenance".

In April last year, a unit of India’s third-largest steel maker, JSW Energy, acquired a significant stake in Royal Bafokeng Capital, which owned shares in SA Coal.

The funding from the Indian company allowed the coal miner to resume operations at the beginning of October last year. SA Coal reported a net loss of R10,1m in the year to December, from a R31m loss the previous year.

Turnover for the year was represented by rental income received from the sidings owned by the group as well as the leasing of its rail allocation.

The miner said it was reliant on JSW for all its funding, short-term and long-term requirements.

"It is expected this will change as the company builds up a new trading record and progress has been made with bankers on, in particular, short- term funding facilities," South African Coal said.

Source : businessday.co.za