Hi SaberX. The high export prices are making it viable to supply these lower quality coals profitably into the export market. There is a big demand for this coal from India and I am aware that Glencore has been redirecting a lot of their low quality SA coal there. They are not alone and one of the reasons Eskom stockpiles are running low. I am sure UNV would be looking at India as an alternative market, which could explain the delay in bringing Brakfontein into production. Don't think anyone could argue that the management of UNV has always been savvy in securing the best possible offtake arrangements and would use it as leverage in negotiations with Eskom.
UNV Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
