South Africa’s Exxaro Resources reported an 8% rise in full-year profit, announced on March 19, 2026, amid fluctuating global coal markets influenced by geopolitical tensions like the Iran conflict.
The company highlighted improved cost controls that offset lower coal prices, while forecasting higher exports in the coming year.
Pakistan’s Reliance on South African Coal Pakistan remains a key destination for Exxaro’s thermal coal exports, alongside markets like India and Japan.
South Africa, led by producers like Exxaro, has supplied a significant portion of Pakistan’s imported coal—around 54% in recent fiscal years—for power plants and industries. This includes higher-calorific-value coal suitable for blended use in plants such as Sahiwal, Port Qasim, and Hub.
Impact of Global Volatility on Pakistani Energy The ongoing US-Iran conflict has rattled energy markets, potentially driving up coal prices and export opportunities for Exxaro, which anticipates exports reaching up to 8 million metric tons in 2026. For Pakistan, this underscores vulnerability to imported fuel costs.
Recent data shows non-coking coal imports surged in early 2026, with South Africa as the top supplier. Experts in Pakistan are pushing for accelerated domestic Thar coal utilization to reduce dependence on expensive imports from South Africa and others.
This development comes as Pakistan expands Thar mining capacity—Block II targeting 11.2 million tonnes per annum by late 2026—and plans blending Thar lignite at imported coal-based plants totaling nearly 4,000 MW.
The Thar Coal Rail Connectivity Project, set for late 2026 operation, aims to ease domestic transport. Exxaro’s strong performance and export outlook highlight how international coal dynamics continue to affect Pakistan’s energy security and import bills.