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CoAL June quarter RoM output down 79%

31st July 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – ASX-, Aim- and JSE-listed Coal of Africa Limited’s (CoAL’s) run-of-mine (RoM) coal production fell by 79% to 188 921 t, compared with 911 563 t in the previous quarter, owing to the depletion of the Vuna colliery resource and the February closure of the Matola rail corridor.

A train derailment on the railway line to the Matola export terminal, in Mozambique, in February, resulted in the collapse of a bridge. This prompted the coal producer to declare force majeure at its Mooiplaats, Woestalleen and Vele collieries.

While the railway line was reopened in April, the company only restarted the export of coal in May.

The force majeure resulted in CoAL’s sales of export quality coal decreasing by 49.7% to 136 372 t in the June quarter, compared with the 271 069 t sold in the March quarter.

Coal sales to the domestic market also decreased by 22.3% to 87 338 t, compared with 112 440 t in the previous quarter, while the sale of middlings coal to State-owned Eskom fell by 29.9% to 202 581 t, compared with 288 967 t in the previous quarter, as a result of the depletion of the Vuna resource, which reduced coal availability at Woestalleen.

Meanwhile, CoAL said on Wednesday that it expected to conclude the Section 189 process related to placing its Mooiplaats colliery on care and maintenance by the end of August.

The coal producer had announced in June that it would place the operation on care and maintenance, following unsuccessful attempts over the past two financial years to make the operation profitable.

The mine closure would affect about 290 workers and 258 contractors.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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