S.Africa's Transnet says not building coal terminal

MUMBAI/JOHANNESBURG, (Reuters)

South Africa's Transnet said on Tuesday its port division was not planning to build a new coal terminal, denying claims by industry sources who said the facility would be built and operational by June this year.

South African industry sources said earlier on Tuesday that a thermal coal export terminal would be built at South Dunes near Richards Bay and would start shipments as early as June. There is already a coal export facility in Richards Bay.

The sources said two junior coal mining companies had been pushing for a new terminal to be built by the National Ports Authority, a division of Transnet, to enable more small Black Economic Empowerment miners to export their own coal.

But Transnet said the NPA was not in talks to build a terminal, and said a June start date was unlikely even if such plans were on the cards.

"I'd like to confirm that Transnet is not in talks with anyone regarding building a coal terminal in Richards Bay," John Dludlu, a Transnet spokesman, said.

Rail capacity has been the major factor limiting South Africa's coal exports -- a source of frustration both to South African coal sellers and Indian coal buyers.