JOHANNESBURG (miningweekly.com) – JSE-listed Keaton Energy achieved record cash generation from its Vanggatfontein operation, in Mpumalanga, during the third quarter of the year.
Thermal coal sales to State-owned power utility Eskom remained consistent during the period to December 31, at 531 386 t, albeit down from 544 237 t in the corresponding quarter the year before.
“As is usual, our long-life Vanggatfontein colliery has performed consistently and continues to generate excellent production and cash flow numbers,” Keaton CEO Mandi Glad said in a statement on Wednesday.
The more profitable use, including the start of a 12-month toll washing contract, of Keaton’s five-seam plant was also initiated after poor market conditions had halted the production of five-seam metallurgical coal during the quarter under review.
The toll washed product totalled 69 513 t during the third quarter, while discard, slurry and associated sales were 224 879 t during the three months under review, compared with the 49 618 t reported in the corresponding quarter the year before.
Meanwhile, Keaton’s idled Vaalkrantz colliery, in KwaZulu-Natal, remains on care and maintenance, as the company awaits a Section 11 Ministerial consent for its sale, which was applied for in May 2016.
“It is disappointing to note that this has still not been granted, notwithstanding the new owner’s commitment and ability to reopen the colliery and generate much-needed employment opportunities in an already deprived area,” Glad stated.