Buffalo Coal supplies both anthracite and bituminous (thermal) coal products to the domestic and export markets.

Anthracite

Washed anthracite coal is currently Buffalo Coal’s primary focus in terms of sales tonnages and the Company is a significant producer in what is a small and specialised sector of South African coal production.

Anthracite is predominantly utilised in the steel making and metallurgical industries as a reductant. As a result, the detailed chemical composition of the anthracite products is an important determining criteria that defines the target markets for a particular coal. Sizing of the coals is also a critical factor for many applications defined products are duff (generally <10mm), peas (10mm x 25mm) and nuts (>25mm).  Aviemore Mine’s anthracite products are delivered into both the domestic metallurgical markets and export markets (particularly South America and Asia).

Buffalo Coal also operates a calcining facility, producing especially high carbon anthracite which is currently all placed into domestic markets, but has in the past been exported in small volumes and has many future potential export opportunities.

Bituminous (Thermal)

Magdalena Colliery produces a bituminous coal which is high in calorific value and therefore is attractive to both domestic and export clients. Products are also sized into duff, peas and nuts with the peas in particular being attractive to domestic industrial users

The duff product is normally exported, but in the relatively small volumes produced it is normally placed into export thermal markets where aggregators utilise the coal as a blend component. As Magdalena’s production is ramped up between 2022 and 2024, this market will again become more important for Buffalo Coal.