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South32 Cuts Guidance for Thermal Coal Output

Coal News - Published on Mon, 20 Jan 2020

Image Source: South32
South32 lowered production guidance from its South African coal mines to the bottom end of guidance of some 26 million tonnes after previously expecting 28 million tonnes in output as a result of wet weather and subdued local demand. Production was also affected by the near-term outlook for domestic demand, and the demobilisation of contractors operating the unprofitable pits.

Saleable coal by SAEC declined 3% or some 386,000 tonnes to 11.8 million tonnes in the December quarter. This decline more than offset a 15% increase in export sales volumes following improved dragline availability at Klipspruit

South32’s 92% stake in its South African coal mines, held in South African Energy Coal, are due to be sold to Seriti Resources for an upfront fee of R100m. South32 will also receive 49% of free cash flow from the assets capped at ZAR 1.5 billion a year until about 2024. South32 said today in a quarterly update that the transaction was expected to close in its December 2020 half year.

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Posted By : Arun Huidrom on Mon, 20 Jan 2020
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