[miningmx.com] – KEATON Energy increased output of all its products for the year ended March 31 despite coal theft at Vaalkrantz that resulted in the installation of a new management team at the KwaZulu-Natal colliery.
The company also disclosed that it was still involved in negotiations with Eskom for a coal sales agreement from the R300m Moabsvelden project. Keaton said in November that the project was at risk from regulatory delays.
“The detection of coal theft at Vaalkrantz was … a blow”, said Mandi Glad, CEO of Keaton Energy. “With depressed coal prices and increasing costs, coal mining is difficult enough without having to endure stock theft,’ she added.
The stock discrepancies were discovered during the last quarter of Keaton’s financial year. “A thorough investigation was undertaken by multiple agencies which culminated in criminal charges being laid against an employee,” said Glad.
Despite the stock discrepancies, Vaalkrantz despatched 395,450 tonnes of anthracite to domestic and international metallurgical markets, an increase of 30% over last year. The mine has struggled in the past owing to geological difficulties.
Keaton also reported a 4% increase in thermal coal production from flagship Vanggatfontein Colliery of some 2.279 million tonnes (mt) of washed 2- and 4-seam thermal coal to Eskom. Metallurgical coal production was up 29% to 126,107 tonnes.
Commenting on Moabsvelden, which Keaton bought as part of the takeover of Xceed Resources for R182m in 2013, Glad said the company was hopeful it would “… be able to report on its conclusion which will allow construction to start”.
Moabsvelden is slated to produce 1.4mt a year of thermal coal with full production expected to be achieved in 2016.
Keaton also said it had suffered a fatality of an employee in an isolated fall of ground incident at Vanggatfontein, the first at the mine.
“We have redoubled our safety efforts and work towards our goal of a harm-free work environment,” said Glad.
