Flag­ship col­liery earns record cash

The Star Early Edition - - COMPANIES -

KEATON En­ergy yesterday pointed to its Vang­gat­fontein flag­ship col­liery in Mpumalanga as it achieved record cash gen­er­a­tion from op­er­a­tions in the third quar­ter to De­cem­ber 31, with Eskom ther­mal coal sales of 531 386 tons. Keaton En­ergy’s Vang­gat­fontein col­liery pro­duces ther­mal coal for sup­ply to Eskom and met­al­lur­gi­cal coal for sup­ply to do­mes­tic in­dus­trial con­sumers. But the pro­duc­tion of five-seam met­al­lur­gi­cal coal was stopped dur­ing the quar­ter due to poor mar­ket con­di­tions. Keaton said that it had ini­ti­ated more prof­itable al­ter­na­tives for util­is­ing the five-seam plant, in­clud­ing the com­mence­ment of a 12-month toll wash­ing con­tract. How­ever, Keaton’s Vaalkrantz col­liery in KwaZulu-Natal re­mains on care and main­te­nance await­ing Sec­tion 11 min­is­te­rial con­sent for its sale. Keaton placed Vaalkrantz col­liery on care and main­te­nance in May last year in a bid to min­imise losses that were ex­ac­er­bated by the on­go­ing global de­cline in coal prices and the un­avail­abil­ity of wa­ter as a re­sult of the continued drought in the re­gion. – ANA

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