[miningmx.com] — SHARES of Forbes and Manhattan Coal Corp rose as much as 8% on Wednesday, a day after it signed an agreement with Transnet Freight Rail and Grindrod Terminals, to export coal through the Richards Bay Coal Terminal.
The Toronto-based miner plans to export coal produced at the mines of South Africa’s Slater Coal company, in which it has a majority stake. Slater Coal has a production target of 680,000 tonnes for the year ending February 2011.
Earlier in the year, logistics group Transnet had said it was on course to increase coal exports within the next five years.
Transnet has previously been criticised by coal exporters for failing to transport all of their coal to the specialised bulk port at Richards Bay.
Grindrod Terminals, a unit of freight company Grindrod South Africa, which provides logistical and stock-piling services to shippers through the Navitrade Terminal, will provide up to 70,000 tonnes in stockpile capacity to receive the coal at the terminal.
At current coal spot prices, the increased throughput could lead to incremental cash flows of up to $30m per annum, Forbes Coal said in a statement.
The company’s shares touched a high of C$3.90 on Wednesday morning before paring some gains to trade up 6 percent at C$3.80 at midday on the Toronto Stock Exchange.
