Exxaro leads fall among miners amid Transnet strike

Exxaro Resources’ shares fell as much as 4% to R197.40 on Monday as miners took a hit after they were caught up in the potentially crippling strike over wages at state-owned transport and logistics group Transnet.

Exxaro, Kumba Iron Ore and other miners rely heavily on Transnet’s infrastructure to move their dry-bulk commodities such as coal to customers as far afield as China.

Thungela Resources’ shares were down 1.35% to R293.01, with Kumba dropping 2.2% to R397.02 on the JSE in early afternoon trade.

The industrial action comes while Transnet is trying to bolster its rail and port capacity to enable mining companies to take full advantage of the upswing in commodity prices over the past few years.

Last week, the Minerals Council SA said the industry had lost an estimated R50bn in revenue so far in 2022 due to Transnet’s inefficient logistics infrastructure.

Transnet has said impediments to rail capacity included rampant theft and vandalism of infrastructure and equipment, as well as a shortage of locomotives due to the refusal of original equipment manufacturers to sell spares to Transnet.

The costs of repairing Transnet Freight Rail infrastructure damaged by theft and vandalism now consumes almost a third of the funds allocated for sustaining maintenance annually, it said.

mahlangua@businesslive.co.za