Insight
South Africa: thermal coal costs and margins continue to decline
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Report summary
South Africa's thermal coal has remained competitive within the global seaborne export market due to falling costs in US dollar terms, largely driven by devaluation of the local currency. The rand has fallen 64% over the past five years. In 2015 alone the average total cash cost for export thermal coal fell 10% on average to US$46/tonne, compared with 2014. Margin compression has continued despite lower costs, due to falling seaborne export thermal prices.
Table of contents
- Executive summary
- Weak exchange rate key to lower cost
- Unit rates decline in 2015
-
Margin down but set to rise
- Economic assumptions
- Conclusion
Tables and charts
This report includes 6 images and tables including:
- South African export thermal total cash cost (US$/t)
- South African export thermal total cash cost (R/t)
- South Africa key rand cost escalators (%)
- South African export thermal coal margins (US$/t)
- South African export thermal coal margins (R/t)
- South Africa: thermal coal costs and margins continue to decline: Table 1
What's included
This report contains:
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