Vanggatfontein achieves consistent performance in Q1 – Keaton

JOHANNESBURG (miningweekly.com) – JSE-listed Keaton Energy’s Vanggatfontein mine, in Mpumalanga, continued to perform consistently in the quarter ended June 30, producing 574 536 t of washed 2- and 4-Seam thermal coal for delivery to Eskom.

Although this was 7% lower than the 617 413 t produced in the quarter ended June 30, 2015, production was in line with expectations.

Keaton attributed the decrease to having worked out the remnant portion of Pit 2 with its lower-yielding coal. Mining had now been completed in these low-yielding areas.

Vanggatfontein also sold 15 103 t of 5-Seam metallurgical coal in the domestic market, 43% less than the 26 548 t sold in the prior comparable period.

Discard and slurry sales totalled 69 734 t, compared with 2 957 t in the prior comparable period, as new markets were developed.

“Vanggatfontein continues to perform consistently both in terms of production and financial criteria. The continuing solid performance provides the basis for the coming expansion with the Moabsvelden project and the growth of the streamlined Keaton group,” said CEO Mandi Glad.

Keaton, in February, sold most of its KwaZulu-Natal assets, except its Braakfontein project, to Bayete Energy Resources. A number of suspensive conditions were still to be met.

During the quarter under review, the Vaalkrantz colliery, in KwaZulu-Natal, was placed on care and maintenance.