“This disappointing performance is the subject of increased management scrutiny,” says CEO Mandi Glad.
Production for the period however was relatively consistent and according to plan. Some 1.139 Mt of washed 2- and 4-Seam thermal coal was delivered to Eskom (down from H1, FY2016: 1.192 Mt). This decrease of 52 372t (4%) was due largely to reception constraints at Eskom preventing delivery of all production in the period.
5-Seam metallurgical coal sales decreased 36% over the comparable period to 35 961 t from 56 156 t in line with the geological model. Spare capacity within the 5-Seam plant was used for additional Eskom production as before.
Production of B-grade coal was also discontinued for this purpose (H1, FY2016: 25 951 t).
Discard and slurry sales were 242 415 t (1H FY2016: 17 704 t).
Vaalkrantz Colliery in KZN remains on care and maintenance as section 11 Ministerial Consent for its sale is still awaited.
“It is pleasing to report yet another solid quarter’s production at Vanggatfontein, although the deterioration in safety performance is a concern,” says Glad.
“The recent grant of a water use licence for the Moabsvelden project allows us to complete the preparation for its development. This fully permitted addition to Vanggatfontein will see combined production rise to 4 Mtpa of washed coal.”