Keaton Energy
Keaton Energy's Vanggatfontein colliery
JSE-listed Keaton Energy achieved record cash generation and a better safety performance at its Vanggatfontein mine, in Mpumalanga, during the third quarter of 2016.

Keaton Energy noted consistent third quarter production at Vanggatfontein, with thermal coal sales to power utility Eskom of 531 386 t, compared to 544 237 t in the same quarter of the previous year.

The production of 5-seam metallurgical coal was stopped during the quarter  due to poor market conditions and more profitable alternatives for utilising the 5-seam plant were initiated, including the start of a 12-month toll washing contract. Toll washed product totalled 69 513 t and discard, slurry and associated sales were 224 879 t compared to 49 618 t in third quarter 2016.

The safety performance at Vanggatfontein improved from a LTIFR of 0.46 in the second quarter of financial year 2017 to a LTIFR of 0.31 in the third quarter of financial year 2017. Vaalkrantz reported a LTIFR of zero, although it remains on care and maintenance.

Meanwhile, Keaton Energy’s Vaalkrantz mine remained on care and maintenance as it awaits section 11 ministerial consent for its sale. Mandi Glad, Keaton Energy CEO said it is disappointing to note that the section 11 consent, which was applied for on 9 May 2016,  has still not been granted, notwithstanding the new owner’s commitment and ability to re-open the colliery and generate much-needed employment opportunities.”

“As usual, our long life Vanggatfontein colliery has performed consistently and continues to generate excellent production and cash flow numbers. Growth via the adjacent Moabsvelden remote pit remains a high priority for the group in the short term,” Glad noted