Thungela Resources, a major thermal coal exporter in South Africa, reassured investors on January 16 that the recent train derailment on the country's primary coal export line is not expected to significantly disrupt its operations.

The incident occurred on January 14 when two trains collided on the line to Richards Bay, South Africa's crucial coal export port, operated by the state-owned freight rail company Transnet.

Transnet has been working to clear the line, but no details have been provided regarding the cause of the collision or the expected restoration timeline.

The disruption of services to Richards Bay adds to the mineral transport challenges already impacted by locomotive shortages, cable theft, and infrastructure vandalism.

Thungela Resources stated it maintains regular communication with Transnet and anticipates updates on service reinstatement. Despite the collision, the company expects only a limited impact on its operations.

Transnet has long grappled with challenges in limited capacity to haul commodities to ports due to equipment shortages and maintenance backlogs resulting from decades of under-investment, which has forced companies like Thungela and Kumba Iron Ore to trim output.

In an attempt to alleviate the situation, some miners have resorted to transporting coal to ports by road, a more expensive and environmentally damaging option than rail. However, Transnet imposed restrictions on trucks entering Richards Bay port in November, citing "unprecedented congestion" on the coastal town's roads.

(Writing by Emma Yang  Editing by Harry Huo)
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