Although the RB1 benchmark fell slightly on the week, the off-spec grades have seen some resilience. Yet again Rand weakness is helping miners to weather the storm, but this only really helps for higher grade material. There is almost nowhere other than Eskom for low-grade material to go, incurring almost the same production costs as the higher grades. Financing for coal mines and extensions remains in private hands as banks further clarify their positions. Other than subsidising miners through the coal price, Eskom is in no position to provide capex, and has recently gone out to tender for proposals around repurposing its RTS stations.
