HomeCoalWescoal resumes mining at Vanggatfontein

Wescoal resumes mining at Vanggatfontein

Wescoal has resumed all coal mining, handling and processing activities at the Vanggatfontein Mine (VGF) – accordingly, the VGF production downtime has been lifted.

This is pursuant to the discussions that have taken place between the mining contractor and the majority union since the last update provided to Wescoal Shareholders on 6 May 2019.

The Parties continue to engage in discussions to ensure that mining activities are and will remain stable at the mine going forward.

The ramp-up to full production profile, subject to no further disruptions, is anticipated to be achieved in early June 2019, two weeks ahead of the previously communicated schedule.

Wescoal has also advised that it, through its wholly-owned subsidiary, Keaton Energy Holdings has entered into and executed a sale of shares and claims agreement with Dan Lucas Sikhosana and Anna Percy Sikhosana, in terms of which Keaton will acquire all of the ordinary shares and claims held by the Sellers against Neosho Trading 86 Proprietary.

Prior to the Acquisition, the Sellers held an 18.2% interest in Neosho, which is the owner of the Moabsvelden Project, with a 74% interest held by Keaton and the balance by one minority shareholder.

Wescoal is currently involved in ongoing discussions with the minority shareholder for the acquisition of the remaining 7.8% interest in Neosho.