Attending McCloskeys' coal export conference in Cape Town, Bloomberg reported Magara’s warning that the country was severely challenged in maintaining export volumes at required levels.

He said while the country had very substantial resources, putting them into production would require major funding with a slow return on investment.

Noting the export capacity of Richards Bay Coal Terminal was being expanded from 76 million tonnes to 91Mt, Magara said new coal supplies must also be brought into production and progress on exploiting the Waterberg coalfield had been slow.

Echoing similar views of Australia and its infrastructure constraints, Magara reportedly said South Africa did not take advantage of the mining boom to invest in infrastructure for the industry.

“We have to prepare and capitalise on the next boom when it comes, because it is going to come.”

Fourth-largest South African coal producer Exxaro Resources estimates Waterberg, located in the northeast, has 40% of the nation’s coal reserves.

The company has plans to ramp-up production from its Grootegeluk mine in Waterberg to 120Mt in a decade.

Rail service difficulties have played a role as Richards Bay shipments declined for the fourth year in a row in 2008.

South Africa was the fifth-largest thermal coal exporter in 2007, representing 9% of global trade.