Top South Africa Coal Miner Extends Rally as EU Eyes Russia Ban
(Bloomberg) -- Thungela Resources Ltd., South Africa's largest exporter of coal burned in power stations, extended its share-price rally after a report that the European Union is working to end imports of the fuel from Russia.
The EU plans to propose a mandatory phaseout of Russian coal supplies in response to reports that Russian forces committed apparent war crimes in Ukraine, Bloomberg News reported. Thungela could benefit as nations scramble to arrange alternative sources of thermal coal.
Its shares jumped as much as 9.6% to a record in Johannesburg, taking their winning streak to a fifth day. Thungela, carved out of global mining giant Anglo American Plc last year, has advanced more than 90% since Russia invaded Ukraine on Feb. 24.
“If the demand for coal within the energy complex remains high and if the EU decides to ban imports from Russia, other players with some kind of optionality to be able to fill that gap, players like Thungela, will benefit,” said Lester Davids, an analyst at Unum Capital Ltd.
Shortcomings in South Africa's rail network may hobble Thungela's ability to move additional coal abroad. Last year, more than $2 billion in potential coal, iron ore and chrome exports were lost because contracted volumes couldn't reach ports, according to the Minerals Council South Africa.
| Read more: |
|---|
|
“It would be very challenging to replace the coal flows from Russia to Europe,” said Ben Davis, a mining analyst at Liberum Capital Ltd. in London. “South Africa could in theory contribute, but no one is expecting any miracles given the logistical constraints on rail.”
©2022 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
