Coal miners are hoping that high coal prices are for the long haul, not just a fleeting phenomenon.
Physical coal prices have surged to their highest level since the start of 2014. The spot price of coal is currently at $97.25/tonne, up from the all-time low of $48.80/tonne hit in January 2016. In 2014 and 2015 coal prices at $72.54 and $60.38, respectively.
The increasing price heralds opportunities for the export of coal from southern Africa. Botswana is one of the countries that should benefit. Botswana’s coal resources are estimated at 212 billion tonnes, making the landlocked country one of the richest in coal reserves in the region.
The increase in coal prices will allow Shumba Energy, which sits on 2 billion of Botswana’s coal reserves, to accelerate exports and generate revenue to push forward with its planned growth.