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Keaton’s mines deliver as expected in June quarter

16th July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Embattled coal miner Keaton Energy was “back on track”, with production at its Vanggatfontein colliery, near Delmas, having delivered 617 413 t of washed 2- and 4-Seam thermal coal to power utility Eskom in the quarter to June 30, in line with its expectations.

"Vanggatfontein continues to perform consistently both in terms of production and financial criteria. Another solid performance underpins the coming expansion with the Moabsvelden project,” CEO Mandi Glad said in a statement.

Five-Seam metallurgical coal sales into the domestic market decreased by 28% to 26 548 t in the quarter under review – in line with the geological model – while 25 951 t of B-grade coal was sold during the quarter, an increase of 92% as the product gained market acceptance.

Meanwhile, the miner’s Vaalkrantz colliery, in KwaZulu-Natal, which lost R24.7-million worth of coal owing to theft, saw local anthracite sales falling to 16 306 t, down 69% from the 52 578 t it sold in the first quarter of the year, while export sales dropped by 73% to 11 000 t, from 41 000 t.

However, 34 999 t of the new 32% ash product was sold.

Glad highlighted that the mine’s performance was understandable in light of the challenges faced in putting the operation back onto a sound footing.

“The new management team made great strides in resolving the issues and we are already seeing improved performance at the colliery.

"Keaton Energy ended the quarter in a confident mood. Our long-life, Vanggatfontein colliery, soon to be expanded with Moabsvelden, performs consistently well. Vaalkrantz continues to provide challenges but the new management team are on top of the task and we have recovered from the setbacks reported at year-end,” noted Glad.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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