Mtwara Port Goes from Cashews to Cokey Coal
In the sleepy fishing town of Mtwara on Tanzania’s east‑coast, you could bet the local harbor had been obsessed with cashew nuts until the end of last year. Now, it’s suddenly bustling with ships hauled full of coal, thanks to the global scramble for Russia‑free energy.
Why the Switch? The European Energy Crunch
- Euro‑Pow‑Panic: The war in Ukraine roared Europe’s gas supply into the can, pushing up coal prices to record highs.
- South Africa’s Belt‑Worth: Europeans are now willing to pay top dollar for coal from far‑off mines, including Tanzania, Botswana, and maybe even Madagascar.
- Climate vs. Bills: Governments are scrambling to drop Russian energy while keeping their power bills from spiking, even if it means burning more coal.
“After the war, everyone in Europe is hunting coal wherever it is,” says Rizwan Ahmed, MD of Bluesky Minings. “They’re offering generous prices—wild!
Europe’s Coal Arms Race
Commodity trader Cargill reported a jump in coal shipments to Europe. From June–August this year, it moved 9 million tonnes of coal worldwide—up from 7 million tonnes a year ago.
- Competing for Fuel: A cheaper alternative to gas? Coal. Europe’s coal demand is projected to skyrocket from Colombia, South Africa, and beyond.
- Price Surge: Coal had been trading at US$429/tonne at Australia’s Newcastle back on Sept 16—just shy of March’s all‑time high of US$483.50/tonne, down from US$176/tonne last year.
Mtwara’s New Chapter
Since late November, Mtwara has welcomed 13 vessels full of coal. The latest, the bulk carrier MV Miss Simona (34,529‑tonne capacity), docked, loaded, and blasted off for France last week.
Shipfix data shows a dramatic uptick: 57 cargo orders to ship Tanzanian coal since the end of June—compared to only two during the same period last year.
Global Coal Flow
Ship broker Braemar notes seaborne thermal coal imports hit a record 97.8 million tonnes in July, the highest on record—an increase of more than 9 % YoY. The figure fell to 89 million tonnes in August, largely due to export hiccups from Australia.
Count the titan of the trade: if the geopolitical wind shifts, the window could close fast. For coal‑rich African nations, the profit margin is too enticing to miss—almost like a storm‑weather jackpot they can’t ignore.
A last hurrah for coal?
Tanzania’s Coal Fever: Doubling Down, Railing Up, and Other Hot Topics
Picture this: the Tanzanian Mining Commission is shouting from the rooftops—coal exports are set to double this year, hitting a whopping 696,773 tonnes. Production itself? Buckle up: a 50 % jump to roughly 1,364,707 tonnes is on the cards.
The Railway Dream
Why is the government so keen on a new railway? Straightforward: more coal means more tax revenue. If they connect the super‑rich Ruvuma region to the port of Mtwara, the whole export operation could get a big boost. The Mining Commission’s acting exec‑secretary, Yahya Semamba, says it’s one of the biggest revenue moves the country can make.
Ruvuma Coal: The Workhorse of Zanzibar’s New Export League
Ruvuma Coal already shipped a solid 400,000 tonnes via a trader to the Netherlands, France, and India since November. The numbers speak louder than a drumroll, even though the company itself stayed tight‑lipped on the story.
Profit Margins—From “Just OK” to “We’re Wealthy”
Think of it this way: coal used to linger around US$75 a tonne last year. A mine back then earned only a laughable US$15 per tonne in cash margin—no wonder miners were thinking “Is this still a mine?” Fast forward to today, when prices swooped to around US$400 a tonne, the margin shot up to a dazzling US$235 per tonne. That’s like trading in a bolt‑suck bag and walking out with a pocketful of gold.
Europe’s Wild Appetite
- European traders willing to pay double what Asian buyers offer.
- Bluesky’s Ahmed, who notes his company might not ship via Mtwara today but plans to, has heard floods of requests from Germany, Poland, and Britain.
Botswana’s New Frontier
Imagine a landlocked country’s coal hitting the seas—that used to be as far-fetched as a yeti in the Sahara. Jokesters aside, Minergy CEO Morne du Plessis recalls how logistics once threatened to crush the market. “We’d be drowning in freight costs,” he mused. “But now the sunshine of high prices lets us float!” He’s shipped roughly 30,000 tonnes from Namibia’s Walvis Bay and is eyeing Mozambique’s Maputo port for future loads.
Madagascar: Vanilla’s Sweet Surprise
Known for its world‑class vanilla, Madagascar is now flirting with a coal export career. CEO Prince Nyati believes current prices are so lush that Madagascar’s coal miners could launch a first‑ever export venture in the freshwater section of global trade. However, he’s a silver‑tongued caution: “If the market turns frost‑bitten, we may have to stop or slim down production. In a world that moves fast, we’ll keep an eye on the horizon.”
Bottom Line
From a railway that could turn a coal‑rich soul into a revenue powerhouse, to miners flipping their margins upside‑down, and from European buyers jacking up prices to island nations chasing boons—coal is stepping back into the spotlight. And for those standing on the edge of the dawn, the key is to keep the jokes, the numbers, and the optimism flowing. After all, who said black rocks can’t be full of witty spark?
‘Coal has been embraced’
Coal Shipping is on a Wild Surge!
It turns out that the world’s coal traffic is not just a quiet industry thing—it’s a full‑blown rollercoaster. The recent spike in high demand combined with the tightest supplies has forced trade routes to do a 360-degree makeover.
What’s Behind the Rush?
- Demand for coal has gone through the roof, jeopardizing even the most seasoned plankton of shipping routes.
- Supply constraints have left vessels scrambling like they’re in a last‑minute paintball match.
- All of this means ships are pulling double duty: more tons and longer voyages.
The Record‑Breaking Numbers
According to Braemar research, the metric that counts “deadweight tonne days”—the amount of cargo a fleet carries over time—hit record heights in July. That’s like setting the bar so high the only way to keep up is to double‑up your ship’s capacity.
Why Should You Care?
- Higher deadweight tonne days mean more ships are in the water, raising the risk of congestion.
- Transport costs are climbing faster than a dragon on a caffeine binge.
- Energy markets will feel the ripple as coal’s price may follow the shipping surge.
Bottom Line
With coal’s demand soaring and supplies running low, the shipping lanes are turning into a high‑stakes game of “who can steer the longest and heaviest.” Braemar’s data shows that in July, the industry reached a new bar—one that will likely keep shipping planners awake—and, honestly, a bit jittery, for a while longer.
The EU’s Coal Flip: From Russian Dependence to Aussie & Co.
Since Russia hit Ukraine in February, the European Union has been scrambling to replace a chunk of its coal and gas supply. According to data from the Indian consultancy Coalmint, imports of thermal coal from Australia, South Africa, and Indonesia have soars more than eleven‑fold over just the first four months of the crisis.
Why the rush?
The big culprit: Russia used to dump about 70 % of the EU’s thermal coal and 40 % of its natural gas. Once sanctions kicked in and supplies stalled, EU power plants suddenly found themselves with a “no‑gas, no‑coal” situation. The result? Energy producers have resurrected mothballed plants and stocked up for a potentially hard winter.
Fast‑Track Carbon Woes
- 2024’s coal push is a “temporary” shift, Willy.
- But even a year’s extra burning could bump CO₂ emissions up by 1.3 % if Russian gas vanishes entirely.
- Germany braces by delaying plant shut‑downs to keep the lights glowing.
Market Musings
Bank of America analysts note that coal and lignite output in Europe has jumped 25 % from last year, despite shutting many plants over the past three years.
Meanwhile, Minergy, a Botswana coal miner, predicts the market will stay strong at least through mid‑2023 – hoping to double output. “The negative narrative surrounding coal has been abandoned, and coal has been embraced as the go‑to energy source in the energy crisis arising from the war,” the company said.
Bottom Line
Power’s on fire (figuratively), but at what cost? The EU’s current mantra of “right now, coal—what else?” could clash with its lofty climate targets, unless the crisis is short‑lived. For now, it’s all hands on deck: Aussie, South African, and Indonesian coal are the new lifelines the continent’s power grid will clutch onto.
