JOHANNESBURG - South Africa’s coal miner Thungela Resources is set to benefit from the Conflict in the Middle East.
The fighting has fanned concerns about global energy security.
And thermal coal prices have surged on the coal market reflecting speculation that reduced natural gas supplies from exporters in the Middle East will lead to the power sector using more coal and less gas.
Last year the picture was different, however and the company reported a significant loss.
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Weaker coal prices led Thungela that operates in South Africa and Australia to write down some assets.
The stronger rand also means the miner earned less in Rand for coal sold on the global market in dollar.
The international market was depressed, mainly due to weak demand in China and India that are key coal-buying countries.