South African coal producers are reporting improved export volumes as state-owned freight rail operator Transnet Freight Rail (TFR) continues to restore capacity on its coal corridors.

Thermal coal producer Thungela Resources's coal export sales, including third-party coal, rose about 12% to 7.4 million tonnes in the first half, despite flat production year on year. The company sold roughly 1.1 million tonnes more coal than its own mines produced, benefiting from improved TFR rail capacity and additional allocations released by producers that failed to fully utilise their quotas. The company also transported about 600,000 tonnes of third-party coal.

TFR's coal corridor annualised capacity reached 59.9 million tonnes in the first half, up from 56.8 million tonnes in 2025. While still below historical peaks, the improved capacity allowed Thungela to draw down inventories and increase coal shipments amid firmer international prices.

The Richards Bay benchmark price rose 15% year on year in the first half, but a stronger rand and lower coal quality pulled realised prices down to $89.18/t, a 15.7% discount to the benchmark.

Jan Havenga, professor of logistics at Stellenbosch University, acknowledged the progress, noting the company's target of 75 million tonnes annual coal railings by 2028-29 may be achieved ahead of schedule.

Thungela reported a sharp rise in first-half earnings, with adjusted earnings per share surging 1.5 times year on year to 4.8 rand. Interim dividends nearly tripled to 5.50 rand per share. Net profit reached 1.4 billion rand, including a non-cash gain of about 1 billion rand from the sale of the Kleinkopje mining rights.

Other producers corroborate the trend. Exxaro Resources' 2025 coal exports rose 2% to 7.1 million tonnes, partly attributed to improved TFR capacity and alternative transport routes. The company targets coal exports of about 8 million tonnes in 2026, an increase of 13%.

Glencore, which cut production in 2024 due to rail constraints, saw export output recover 8% to 12.6 million tonnes in 2025, prompting the company to reassess previously shelved expansion projects.

The capacity recovery is most evident at the Richards Bay Coal Terminal (RBCT). South African customs data shows the terminal exported 67.21 million tonnes of coal in 2025, up 5.2% from 63.88 million tonnes in 2024, the highest level in five years. Exports had fallen to 61.82 million tonnes in 2022, a multi-year low.

Despite RBCT's rated throughput capacity of 91 million tonnes, current volumes remain well below that level. For reference, the terminal exported 81.33 million tonnes in 2017, still far below its rated capacity. However, the direction is clearly positive, and industry confidence is growing amid government measures to open the rail market to private operators.