BALI, Jun (Reuters) - Mauritian sugar processors are expected to buy close to 1 million tonnes of South African thermal coal for 2008/2009 delivery, up from around 600,000 tonnes in the past year, trade sources said on Tuesday. Speaking on the sidelines of the Coaltrans Asia conference, traders said the group of eight sugar processors in Mauritius have for many years run small power plants fuelled by a mix of coal and biofuel from sugar cane waste. The ending of sugar subsidies by the Mauritian government has resulted in a smaller sugar crop and consequently less sugar cane waste to power the plants, requiring higher coal imports, they said. These small power plants, originally intended to fuel sugar processing plants, also supply vital electricity to the grid. The government will have to ensure they continue to run at full capacity using coal or face power cuts, the traders said. South African coal in small vessels has been the most obvious and economic source of coal due to its proximity to Mauritius. The sugar processors have for many years tendered for their annual coal demand collectively and bought from traders. This year they are expected to buy singly and continue to operate their import terminal collectively. South African coal for prompt delivery has been trading at around $132.00 a tonne FOB Richards Bay. |