Projects

SOUTH AFRICAN ANTHRACITE

WHAT IS ANTHRACITE

south-african-anthracite-sidewyas-graph

DEMAND FOR ANTHRACITE

South Africa exhibits a unique demand profile.

GLOBAL ANTHRACITE DEMAND BY USE/APPLICATION
Global annual demand in 2016 for metallurgical anthracite is estimated to be 115Mt, with the ferrous sector accounting for over 80%.

SOUTH AFRICAN ANTHRACITE DEMAND BY INDUSTRY
By comparison South Africa’s anthracite demand in 2016 was 2.1Mt of which 98% was consumed by the non-ferrous sectors.

south-african-anthracite-piegraph

SOUTH AFRICAN ANTHRACITE PRODUCTION

MINE CLOSURES, DECLINING PRODUCTION, DETERIORATING QUALITY AND RISING COSTS

The industry decline is occurring in an environment of increasing demand from a globally competitive ferroalloy industry driven by a lack of viable anthracite projects – RAC is the last known long-life, high quality anthracite project in South Africa.

  • The declining production profile is attributable to the depletion of viable resources, growing geological complexity of established mines and challenging quality.
  • Ferrochrome, electrode paste, ilmenite and calcium carbide markets are particularly sensitive to impurities and require Sulphur<1%, and phosphorous <0.015%. At least one major competitor can no longer consistently provide this specification.
  • The local ferrochrome market has been accepting up to 18-19% ash in order to keep low impurity mines viable.
  • High sulphur/phosphorous mines are dependent upon the ferromanganese and export markets.
  • All producers are benefiting from the growing market for exports of up to 35% ash anthracitic coal.
  • No significant new projects or expansions are scheduled in South Africa.

south-african-anthracite-map
RAC can produce the full range of anthracite products:
  • Offers market diversification
  • High value niche producer
  • Maximise recovery by selling its discard