Notably, South African operations achieved a historic low TRCFR of 1.07, while Australia saw a significant improvement to 13.21. These safety achievements are a testament to Thungela’s strong safety culture and commitment to protecting its workforce.
In addition to its safety milestones, Thungela reported impressive operational and financial results for 2024, highlighting its continued growth, robust financial health, and disciplined execution of strategic priorities.
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Thungela also recorded operational achievement and strong production that surpassed expectations in Australia as well as South Africa, with South African export saleable production increasing by 11% year-on-year to 13.6 million tonnes (Mt), marking the first three-year growth. The growth was driven by improved productivity and rail performance, compensating for prior production disruptions. In Australia, the Ensham mine recorded a 52% increase in production to 4.1Mt, evidence of the success of productivity initiatives since its acquisition.
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The company also reported a strong financial performance in 2024:
With regards to its strategic progress and expansion, Thungela advanced its life extension projects, with the Elders project now in the ramp-up phase after completing construction. The mine is expected to reach a steady-state production rate of 4 million tonnes per annum by early 2026. The Zibulo North Shaft project also remains on schedule and within budget, with completion expected in 2026, extending the life of the mine to 2038. The company furthered its geographic diversification strategy by acquiring an additional 15% stake in the Ensham Mine for AUD 48 million, bringing its total ownership to 100%.
Despite challenges in the thermal coal division, Thungela remains optimistic about the long-term demand for coal, particularly from developing countries. The company was committed to being green and paid R970 million into an Australian investment fund to fund rehabilitation liabilities and R204 million into the green fund of South Africa.
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Commenting on the results, Thungela Chief Executive Officer, July Ndlovu said their 2024 performance underscores the company’s operational excellence and disciplined approach to strategy. We are particularly proud of our safety record and the growth in production, which demonstrate our commitment to sustainable and efficient operations.”
“While the impact of a softer price environment across the Richards Bay and Newcastle Benchmark coal prices continues to impact our financial results, it is encouraging to note the improvement in the performance of Transnet Freight Rail (TFR) post the annual maintenance shutdown period, which was completed in July 2024.
TFR achieved a run rate of 51.9Mtpa for 2024, an 8.4% increase in performance from 2023 for the industry, with an average annualised run rate of 56.2Mt in the second half of the year, from an annualised run rate of 47.3Mt in the first half of the year,” Ndlovu stated.
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