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Thungela Resources Ltd on Tuesday said coal prices were stronger due to the Middle East conflict but demand remained subdued in the first half of 2026. The Rosebank-based coal miner expects export saleable production in South Africa to be about 6.3 million tonnes for the six months ending June 30, down from 6.4 million tonnes a year earlier. But export saleable production at Ensham coal mine in Australia is guided to around 2.0 million tonnes, up from 1.6 million tonnes. In a pre-close statement, Thungela said thermal coal markets broadly tracked the tone in oil and gas, initially strengthening on higher oil and European gas prices, before retracting later as energy prices softened. The Newcastle Benchmark coal price on average rose to $124.79 per tonne for the five months that ended May 31, up from $105.37 in 2025 and up from $102.51 in the first half last year. The Richards Bay Benchmark coal price climbed on average to $104.25 per tonne for the five months to May 31, compared to $89.53 in 2025 and $91.78 in the first six months last year. Physical coal demand remained subdued, with end-users in India showing greater preference for cheaper, lower-quality material, while other Asian importers favoured cheaper Russian and Colombian supply over higher-quality cargoes from South Africa and Australia, Thungela said. The company said energy markets remained volatile as prices continue to respond to shifting sentiment around the protracted war between the US and Iran and the disruptions to shipping through the Strait of Hormuz. Thungela said it expects to release its full interim financial results on August 17. Shares were down 3.5% to R 96.01 in Johannesburg on Tuesday morning, while they were down 5.2% to 439.00 pence in morning trade in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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