JOHANNESBURG (miningweekly.com) – Following the completion of the pit configuration activities and the resumption of steady-state production at Kangala colliery, Universal Coal now expects record domestic sales of more than 200 000 t in April.

As run-of-mine (RoM) coal production continued to improve, the colliery’s performance in April was expected to be a significant improvement on the preceding month and the quarter ended March 31, after sales tonnes were impacted by poor plant performance and challenging operating conditions.

“Difficult operating conditions experienced during the December 2015 quarter, owing to the pit reconfiguration and additional stripping activities required for the updated rock mechanic engineering requirements, persisted into the March quarter,” explained Universal CEO Tony Weber.

However, with the longer-than-expected reconfiguration now concluded, there was greater pit stability and improved production flexibility in anticipation of potential longer-term increases in demand.

Output from Kangala increased 1% to 771 900 t RoM quarter-on-quarter and 34% year-to-date, with the company on track to reach its 2016 RoM target of 2.8-million tonnes.

Total coal sales for the quarter to March, at 436 957 t, were 6% lower than the previous quarter, but up 22% in the nine months to March 31.

Meanwhile, engagements continued with State-owned power utility Eskom over the coal supply agreement at New Clydesdale colliery. An update would be provided in due course, Weber added.

Further, Universal was still awaiting the water-use licence for Brakfontein; however, plans to incorporate the Brakfontein RoM coal into the Kangala colliery product stream was progressing well.

Group operating cash flow generated during the quarter was A$3.7-million, while net cash generated in operating activities reached A$3.7-million for the quarter.

During the nine months to March 31, the group reported earnings before interest, taxes, depreciation and amortisation of A$14.8-million.

Universal was being bought out by fellow South African coal company, Coal of Africa, with more than 93% of Universal shareholders accepting the offer.