NEW contracting and capacity allocation processes have commenced as Transnet prepares to open up capacity allocation for emerging miners.
Transnet has previously announced its intention to enable emerging miner ramp-up via the Ports of Gqeberha and Saldanha from April 2023, when its current long-term contracts come to an end.
Transnet hopes to increase the current number of emerging miners that have access to rail and port capacity from four to eleven, through introducing seven new entrants by the beginning of the next financial year.
The emerging miner allocation is currently 2 million tons per annum (mtpa). Transnet seeks to make an additional minimum of 2mtpa available for emerging miners thereby creating 100% growth to a minimum of 4mtpa in this sector by April 2023. This constitutes a 25% share of total available capacity.
The key minimum requirements that Transnet has put forward as qualifying criteria for capacity allocation include:
- Valid mining rights
- Current mining activities
- Access to a rail loading facility
Transnet has made good strides in driving transformation in the manganese mining sector, where new entrants currently account for 12% of overall capacity. However, Transnet is still experiencing challenges in the coal mining sector, where emerging miners only enjoy 5% of available capacity and in the iron ore mining sector which has 0% emerging miners.
Transnet continues to focus efforts on implementing step-changes in the following areas in support of emerging miner growth: Rebasing the allocation ratio between emerging and major miners; easing ways of doing business with Transnet for emerging miners (contracting, credit management, capacity application processes); improving access to infrastructure for emerging miners, such as loading facilities; and, ensuring transparency in its processes.
