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Here we go. Reply from company about SEZ.
There is a lot of noise and action around SEZ at the moment. We are more closely engaged on the power station that will supply SEZ than on the downstream activities. Should we be able to supply thermal coal to the power station it will be a real win for us. Some detail on progress:
- land has been secured
- Environmental Authorisation submitted
- Power China tender secured
In theory, once EA is approved (and obviously subject to Makhado being built), the construction of the power station can commence.
Another interesting read:
https://sundayworld.co.za/sponsored-content/musina-makhado-sez-to-become-regional-economic-epicentre/
By Bloomberg News
(Bloomberg) -- Thermal coal prices in China are inching closer to the point that could spur government intervention to cool the market.
The spot price at Qinhuangdao port rose to 591 yuan a ton on Friday, 2.2% higher on the week, according to the China Coal Transport & Distribution Association. That’s just shy of the 600 yuan mark that analysts think could trigger government action if the gains are sustained. The November futures contract in Zhengzhou, meanwhile, has nosed above that level for the third time this month.
The port price has rebounded after tumbling to 464 yuan in May. Safety checks and a shortage of sales quotas at mines, plus restrictions on imports, have crimped supply just as demand has improved in line with China’s emergence from the worst of the pandemic.
While current prices are still reasonable, “if they rise above 600 yuan and stay there, the government is likely to consider policies such as increasing output,” said Tian Miao, an analyst at Everbright Sun Hung Kai Co. in Beijing.
China is the world’s largest producer and consumer of coal and low electricity prices are crucial to keeping the recovery on track. In May last year, the government asked miners to help reduce prices to below 600 yuan to ease the burden on power plants after the benchmark grade rallied to 634 yuan. The government has typically targeted a band of 500 to 570 yuan a ton as a level that adequately balances the needs of miners and utilities.
Still, there’s less pressure on the government to act this time around, according to Tian. China’s economy is forecast to grow only moderately in the wake of the health crisis and there’s less impetus for prices to rise, she said.
An interesting read:
https://www.zoutnet.co.za/articles/news/53116/2020-09-20/yea-or-nay-for-sez
I don’t think they would have raised money for IDC loan if project wasn’t going to go ahead. We need a good quarter, production is back to full capacity, AM demanding coal again. Last Quarter results were always going to be bad with effects of Covid, can’t afford any more interruptions or holdups. I bought a load at just above 6 previously.
Uitkomst was due to be back at full production by the end of June.
Arcelor Mittal have started up again and are calling for coal so demand for product
IDC just a bridging loan so they have time to finalise the Phase 1 funding package
looking at Europe, power, carbon and coal prices have also increased recently.
Hi tootight, I’ve met Brenda Berlin the new CEO on a couple of occasions when she’s been in London, the last time was when she was doing the rounds when DB stepped down. Last time I heard she was confident about getting the IPC deal completed. Also had other contingencies so fingers crossed we get something soon.