BHP and Transet Ink $2.1 Billion Coal Deal

Transet SOC, South Africa’s state-owned ports and rail operator, has signed a 10 year $2.1 billion coal haulage deal with BHP Billiton to transport the fuel to ports.

According to Bloomberg:

Transnet will haul 17 million metric tons to 18 million tons annually from BHP’s mines in the eastern Mpumalanga province to the Richards Bay Coal Terminal on the country’s northeastern coast, Jon Evans, assistant vice president of BHP Billiton Energy Coal South Africa, told reporters. RBCT is the world’s biggest such facility, according to its website.

Brian Molefe, Transnet’s chief executive officer, said:

The agreement with BHP is a massive boost for certainty around Transnet’s capacity-expansion programs on the export-coal line.

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