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Petmin signs 600,000 tpa metallurgical export agreement with Grindrod

Oilfield Technology,

Petmin has signed a renewable five-year agreement that will enable it to export up to 600,000 tpa of metallurgical anthracite from Grindrod Terminals Kusasa dry bulk facility in Richards Bay, located in the KwaZulu-Natal province of South Africa.

The agreement, effective from 1 February 2012, gives Petmin the capacity to ship its expanded anthracite production from the Somkhele mine, 85 km north of Richards Bay.

Under the terms of the agreement, Petmin has been allocated 45,000 t of exclusive stockpile and an indicated vessel loading rate of 12,000 tpd.The Grindrod facility replaces Petmin’s previous throughput arrangements at Richards Bay.

Somkhele is increasing production from its current 535,000 sales tpa to in excess of 1.2 million tpa. Long-term sales contracts are already in place with domestic and international customers.

The mine produces anthracite with low phosphorous and sulfur and high vitrinite content, for export via Richards Bay (55% of production in 2010 – 2011) to iron ore pelletising and sintering markets mostly in Brazil, and for the South African ferro-alloy industry (45% of production in 2010 – 2011).

Anthracite produced by Somkhele is transported by road from Somkhele to Richards Bay, and to domestic customers.

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