[miningmx.com] — THE department of mineral resources (DMR) has granted entitlement to two new coal exporters under the Quattro system, with a further two slots still up for grabs.
This came after Mines Minister Susan Shabangu approved recommendations allowing four new entitlements, in terms of the reorganisation of the Quattro system which provides 4 million tonnes (mt) per year of export entitlement to black-owned companies at Richards Bay Coal Terminal (RBCT).
In answer to questions on the identity of the new Quattro members, DMR spokesperson Zingaphi Jakuja said the applications of Coastal Fuels and Silver Unicorn Trading have been approved, each receiving a 175,000 tonnes per year allocation.
Two more slots, also with a 175,000 t/year allocation, have yet to be finalised – amounting to roughly 700,000t/year which had been reallocated.
The reorganisation of Quattro became necessary when members of the scheme successfully applied for use of Phase V of RBCT’s expansion project commissioned in May last year. As a result, these members – using both RBCT entitlement and Quattro – have been “double dipping’.
Bonga Ndabezitha, chief director for mineral promotion at the DMR, told Miningmx in May that Quattro members who had won direct RBCT entitlement would not immediately lose their Quattro membership, but would be migrated from the system over a period of three to four years.
Among the existing members, Worldwide Coal Carolina has the biggest allotment of 401,000t/year.
Jakuja said a permanent administrator has not yet been appointed. The former administrator, Mhlatuze Bay Coal Administrators, was suspended in February on allegations that it misappropriated R5.5m.
An acting administrator, UBU Logistics that has former public enterprises minister Alec Erwin as a director, was retained to run Quattro while invitations for a permanent administrator were put out to tender.
Although RBCT can export 91 mt/year of coal following its Phase V expansion, capacity limitations on the Mpumalanga-Richards Bay rail, which is managed by Transnet Freight Rail, mean the terminal exports two-thirds of its capacity – possibly less this year.
