CoAL output hit by floods, derailment

Johannesburg, South Africa — 29 April 2013 – Junior coal mining company Coal of Africa (CoAL) has reported a 21% drop in third-quarter run of mine coal output as a result of heavy rains and a derailment on a railway line which hit the company’s operations.

The company said run of mine coal production in the quarter to the end of March fell to 911,563 tonnes, from 1.15 million tonnes in the previous quarter, reports Fin24.

Heavy rainfall halted operations at its Vele Colliery in South Africa for three weeks, also weighing on production, the company added.

CoAL declared force majeure on coal shipments in February after the derailment on a rail corridor linking its collieries in South Africa with the port of Maputo in Mozambique.

The company expects to restart South African exports in May.  

CoAL said export sales from the Matola Terminal in Mozambique in the third quarter fell by 34% to 271,069 tonnes from the second quarter.

Source: Fin24. For more information, click here.