By Promit Mukherjee and Wendell Roelf
JOHANNESBURG, Feb 6 (Reuters) - South Africa's no. 2
coal miner Thungela Resources expects strong coal
demand from emerging markets for at least two decades and
believes it can attract funding for as long as returns are
attractive, its CEO said on Monday.
Climate capaigners are opposed to the continued use of coal
as it is the most carbon-intensive fossil fuel, but the industry
sees scope for high profits.
Coal demand and prices have surged following Russia's
invasion of Ukraine last year, which led some European countries
to switch from lower carbon gas to coal because of the
disruption of energy supplies.
"I have no doubt in my mind that coal is here to stay for a
lot longer than most people predict," July Ndlovu, chief
executive at Thungela told Reuters on the sidelines of an
African mining conference in Cape Town.
The highest demand is likely to be from emerging markets in
Asia and Africa.
"We know that in those (emerging) markets coal use is likely
to remain part of the energy mix for the next two decades, maybe
three," he said.
Thungela, primarily a coal exporter with assets only in
South Africa, was hit by port and rail bottlenecks in the
country last year that caused the loss of almost 600,000 tonnes
of exports.
It also took the brunt of rolling power cuts in the country
that curtailed its production.
As a result, it has sought ways to diversify.
Last week it agreed to buy a 85% stake in Ensham coal mine
in Australia from Japan's Idemitsu Kosan Co for $240
million.
Ndlovu said the company will keep seeking opportunities to
buy coal or other bulk commodities, but it is less keen to join
the race for battery metals such as copper and cobalt.
He said funding for coal project acquisitions should not be
difficult for the company given the prospects of returns.
"Where there are attractive returns there is always going to
be funding," he said.
(Reporting by Promit Mukherjee and Wendell Roelf; editing by
Barbara Lewis)
