JSE-listed coal miner Keaton Energy said in its results for the six months ended 30 September 2015 that negotiations with regards to the sale of Vaalkrantz are progressing and have led the board to classify the bulk of the KZN assets as held-for-sale and discontinued operations.
These assets were not previously classified as held-for-sale or as discontinued operations.
As announced on 29 September 2015, Keaton received an offer to acquire the entire issued share capital and claims against Leeuw Mining and Exploration and Amalahle Exploration, collectively the KZN assets.
The KZN assets consist of the operating Vaalkrantz Colliery and the Koudelager, Balgray and Mooiklip projects. The Braakfontein project held under Leeuw Braakfontein Colliery is specifically excluded.
Keaton says that the transaction remains under negotiation and shareholders will be updated in due course.
Production of domestic and export anthracite at Vaalkrantz during the period under review decreased to 176 089 t from 191 898 t in the comparative period.
Keaton says that its short term focus will be on the continued excellent operations at Vanggatfontein and concluding the disposal of the KZN assets.