ryobal and nobullnotOzzie, IKW's coal CV value is around 28MJ/kg...

ryobal and nobullnotOzzie, IKW's coal CV value is around 28MJ/kg which is not suitable for Eskom unless it is blended down to 21-22MJ/kg.

South Africa worry low CV coal export (India bought a lot) will make Eskom coal shortage, If they make a ban, they will ban low CV (maybe below 22-23MJ/kg). Indonesia tried to do that 1 or 2 years ago, eventually they abandoned the plan.

The best margin at this moment is domestic market (not Eskom), which grade A (27.5MJ/kg) coal pea, price roughly Rand700-750 which is around Rand120-150 better than you sell in export (no port lease, handling cost around Rand120), but domestic market is small.

This a good report regarding SA coal products and market though it is a little bit outdated. Worth a reading.

http://www.saimm.co.za/Journal/v110n10p593.pdf