Most South African export coal leaves through the Richards Bay Coal Terminal on the KwaZulu-Natal coast, which shipped 57.66 million tons in 2025, up from 52.08 million in 2024, according to Miningmx. Cargoes are described by their calorific value on a net as received basis, written NAR and measured in kilocalories per kilogram. Grades are referred to by that figure, so a buyer will see offers for 6,000, 5,500 or 4,800 NAR coal.
The headline grade is only part of the picture. Ash, sulphur, volatile matter, total moisture and size all affect how the coal burns in a buyer's boiler and what it costs to handle. A sound offer states a typical value for each, and the rejection limits beyond which a cargo can be refused or repriced.
Prices are usually set against published indices for Richards Bay coal, chief among them API 4, which Argus describes as an average of its fob Richards Bay 6,000 assessment and the McCloskey Richards Bay FOB marker. Offers are quoted free on board (FOB) at Richards Bay, or cost and freight (CFR) to the buyer's port, under Incoterms 2020, the International Chamber of Commerce rules that set out what the seller and the buyer are each responsible for.
What a complete offer states
- The specification, with typical values and rejection limits.
- The quantity, and the tolerance either side of it.
- The delivery basis under Incoterms 2020, with the port.
- The laycan: the window in which the vessel must arrive to load.
- Inspection by an independent surveyor at the load port.
- Payment terms, and how long the offer remains valid.
Sources
- Miningmx: SA coal exports continue turnaround rising 10.7% last year, 27 January 2026
- Argus: Argus/McCloskey's API 4, methodology, accessed 14 November 2026
- International Chamber of Commerce: Incoterms 2020, accessed 14 November 2026