After years of negotiation, a deal has been struck that will allow the long-awaited R700m phase 5 expansion of the export coal terminal at Richards Bay.

Details of the agreement between the shareholders of Richards Bay Coal Terminal (RBCT) and the National Ports Authority (NPA) are expected to be released next week, ending months of speculation that the project has been derailed.

The expansion, and the additional export capacity it will bring, could present opportunities for new black economic empowerment companies to enter the global market for thermal coal.

Among these could be a proposed R280m joint venture between Kumba Resources and Eyesizwe to develop coal reserves at Kalbasfontein and Golang Coal a joint venture including Eskom Enterprises, Shosholoza and another empowerment partner.

"In essence, once it (phase 5) is given the go-ahead, we would like to press the button on Kalbasfontein. But we would have to re-examine its economic viability on the prevailing rand," a Kumba spokesman said yesterday.

The main stumbling block in the protracted negotiations on the expansion of the terminal was the NPA's request that RBCT's seven shareholders Ingwe (owned by BHP Billiton), Anglo Coal (part of Anglo American), Duiker (owned by Xstrata), Total Enterprises SA, Sasol, Kangra and Eyesizwe make capacity available to nonshareholders. This "common user" capacity would be made available on an ad hoc basis, and conventional wisdom in the industry is that much of it would go to black empowerment coal producers.

It was reported last year that the NPA wanted "common user" access to 4-million tons of capacity through RBCT straight away.

Coal exports are SA's thirdlargest commodity export. In 2002 (the latest figures available), revenue from coal exports was R30,4bn. Last year, more than 71million tons was exported from SA's mines, 68,3-million tons of that from RBCT.

NPA CEO Siyabonga Gama confirmed yesterday that an agreement had been reached. "I can confirm that we have indeed made a number of significant steps and we have reached an agreement.

"We agreed with RBCT that we would make a joint statement in the next week," he said.

The agreement is expected to state that an increase in "common user" capacity to 4-million tons will be staggered, according to an industry source.

The "common user" capacity would be 2-million tons this year, increasing to 3-million tons next year and to 4-million tons in 2006.

Business Day