African Rainbow Minerals (ARM) has lauded the significant improvement in transparency at Transnet, South Africa’s state-owned rail enterprise, under its new leadership. André Joubert, CE of ARM Ferrous, highlighted the proactive steps taken by Transnet to engage with the mining industry, especially concerning the transportation of iron ore and manganese.
During a discussion with Mining Weekly, Joubert shared insights into the collaborative efforts between the mining sector and Transnet, which have led to a more open and constructive partnership. This change comes at a crucial time as the industry grapples with logistical challenges affecting the shipment of critical minerals.
Integral Asset Management’s CIO, Bruce Williamson, inquired about ARM’s strategy in light of Kumba Iron Ore’s production adjustment due to limited rail capacity. Joubert responded by emphasizing the comprehensive engagement between Transnet and its industry partners, including allowing an independent technical assessment of the rail infrastructure.
The assessment revealed a deteriorated state of the rail network, necessitating considerable investment and effort to restore its operational capacity. As a result, ARM and other producers have aligned their shipping volumes to about 87% to 88% of the rail’s nameplate capacity, anticipating this will be the working level for the next three to five years.
Addressing the manganese transportation, Joubert noted that ARM had initially planned to complement rail transport with road haulage to meet its production targets at the Black Rock mine. However, the decline in prices and the inefficiency of road transport led to the cessation of this practice. “Road haul does not make sense for us,” Joubert stated, underscoring the collective decision to rely on rail transport as the primary method for moving manganese to ports.
Looking forward, ARM has adjusted its rail volume expectations, projecting a gradual increase from 3.4 million tons to four million tons over the next few years. This strategic planning reflects a realistic approach to dealing with the current limitations of Transnet’s rail services and emphasizes the need for operational improvements and infrastructure investment.
Transnet’s new era of openness and collaboration with the mining industry marks a positive shift towards addressing long-standing transportation issues. As both parties work closely to implement various programs aimed at enhancing the rail network, there is a shared optimism for the future of mineral transportation in South Africa. ARM’s alignment with Transnet’s current capabilities and future plans demonstrates a commitment to adapting operations to ensure sustainable and efficient mineral export.
