Coal crisis forces Europe to pay top dollar to remote mines in Africa

By bfnadmin  | Date: 2022-09-21

Coal crisis forces Europe to pay top dollar to remote mines in Africa

The aftershocks of Russias invasion of Ukraine still wage around as countries across Europe are now vying to pay hefty sums of money to purchase coal from Africa’s remote mines in Tanzania, Botswana, and probably Madagascar to remain afloat amid the crippling energy crisis that has been ravaging the region ever since the war broke out.

The sudden surge in the cost of thermal coal, following the war, has resulted in many European countries losing their access to vital supplies of natural gas and coal from Russia.

Additionally, the revival of coal demand is reportedly coming from governments who are trying to steer away from Russian supremacy, while also parallelly attempting to cap power prices. However, these attempts are currently rivaling climate strategists’ plans to move away from polluting fossil fuels.

Rizwan Ahmed, managing director of coal miner Bluesky Minings in Tanzania claimed that European players are now focusing on any location that can provide them with the required amount of coal even with soaring prices.

Furthermore, commodities trader Cargill Inc. has been charting a tremendous rise in the demand for coal over the past few months. Jan Dieleman, president of Cargill's ocean transportation division, stated that the company has been transporting close to 9 million tons of coal in the period between June – August, which is a marked rise from 7 million tons that were transported the previous year.

For those unversed, the main motive of this ravaging competition for coal is to steer clear of the more expensive natural gas supplies. Dieleman also claimed that Europe showcases promising chances of sourcing coal from South Africa, Columbia, and even farther as per the current scenario.

Interestingly, Tanzania is traditionally known for exporting coal only to its neighboring countries, going any further was not a feasible option, as this process required transporting materials for more than 600 km away from the mine location to the nearest Indian Port of Mtwara.

It is worth mentioning that Mtwara is currently overseeing close to 57 cargo orders, complete with available vessels which is a sharp increase from the statistics of the previous year.

Source Credits: - https://www.thedailystar.net/business/news/coal-rush-energy-crisis-fires-global-hunt-polluting-fuel-3123776

About Author

bfnadmin    

bfnadmin

bfnadmin currently works as a content developer for Bona Fide News.

...

Read More