High coal prices around the World:Is Africa benefitting from this price surge?

BY PROF.SOSPETER MUHONGO

AS of 31 December 2020, the World's coal reserves estimates are at 1.16 trillion short tons of proved recoverable reserves.

This amount of coal may last the World for about 133 years at the current consumption levels. Africa's reserves are estimated (2019) at about 16.4 billion short tons.

This is a very conservative estimate because Africa's coal reserves are poorly studied with the expectation of the South African ones!

COAL PRICES

*The current coal prices in USA are around US$ 303.00 per ton

*Bank of America (BofA) price predications at a global level:

29 August 2022 - The coal fuel is averaging $375 for the fourth quarter of 2022
 
Fitch predictions:

15 August 2022 - the Newcastle thermal coal price to average US$ 280/t in 2023 and US$ 250/t in 2024, before trailing off in 2025 (US$ 200/t) and 2026 (US$ 180/t). This will result in a forecast average price of US$ 246/t from 2022–26. Fitch's previous forecast for this five-year period was US$ 159/t.

AFGHANISTAN

July 6th, 2022: Afghanistan's daily export is around 12,000 to 14,000 tons of coal, mostly to Pakistan.The Taliban administration lifted prices for coal to US$ 200 per tonne from US$ 90 per tonne

Is Africa keenly following the global coal's price surge?

Prof.Sospeter Muhongo

Co-Author of the Geology and Mineral Map of Africa

Former President of the Geological Society of Africa

According to State Mining Corporation (STAMICO),the most recent feasibility study for coal to power generation reveals coal resources of about 85 million tonnes available at Ivogo and Kabulo ridges within the Kiwira Coal Fields capable for sustaining coal fired power of up to 400MW with minimum life span of more than 40 years and also supply coal to manufacturing industries and other customers.(INTERNET PHOTO).

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