Exxaro will go on exporting coal amid Covid-19 lockdown

Exxaro, SA’s largest coal miner, will continue to export product out of SA to aid the government with foreign exchange during the national lockdown.

In an update released to the market on Friday, Exxaro said it would be able to continue with its production activities during the 21-day lockdown, subject to the approval of an application that demonstrates that these activities are essential.

Exxaro is the largest provider of coal to Eskom and the utility has confirmed that all its suppliers will be issued with the necessary permits to ensure the country’s energy security during the lockdown, which is aimed at curbing the spread of the Covid-19 pandemic. As of Friday morning, it had claimed two lives in SA.

The group said it will also continue to export coal. “The need to minimise the economic impact of the lockdown by continuing with the generation of foreign exchange, will provide the financial capacity for the state to respond to the crisis by continuing, to the extent it is possible, with our coal exports to offshore customers.”

This will, however, this will be subject to Covid-19 responses in those markets, which may prevent the delivery of coal, Exxaro said.

It said its production activities will also be carried out with the minimum staff levels to maintain the guidelines of social distancing and safe health practices, to prevent the transmission of Covid-19 both inside and outside work areas.

Glencore, another supplier of coal to Eskom, said on Thursday it had temporarily closed two of its coal mines but would continue to provide coal to the utility while any coal exports would be subject to approval from the department of mineral resources and energy.
Source: Business Day Live