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South Africa Energy Coal

Coal News - Published on Mon, 21 Jan 2019

Image Source: Mining Global
South Africa Energy Coal saleable production decreased by 9% (or 1,252 kilo tonne) to 12.2 million tonne in the December 2018 half year. Export production was impacted by the dragline incident at Klipspruit in August 2018, while domestic production benefitted from the commencement of a contract to sell lower quality stockpiled product in the June 2018 quarter.
FY19 production guidance remains unchanged at 29 million tonne (17.5 million tonne domestic, 11.5 million tonne Export), with the Klipspruit dragline expected to return to service by the end of January, underpinning an increase in export volumes in the June 2019 half year. Domestic volumes are also expected to benefit from a further increase in the sale of lower quality stockpiled product and implementation of a new shift pattern at Khutala.

Illawarra Metallurgical Coal saleable production increased by 106% (or 1,980 kilo tonne) to 3.8 million tonne in the December 2018 half year as the Dendrobium and Appin longwalls continued to perform strongly. Metallurgical coal stockpiles were also established during the period in advance of two longwall moves scheduled for the March 2019 quarter.

South Africa Energy said that “We reached agreement with employees covered by the Dendrobium Mine Trades and Operators Enterprise Agreement during the December 2018 quarter, having previously reached agreement with the Dendrobium and Appin Deputies. We continue to renegotiate the remaining labour agreements at Illawarra Metallurgical Coal and this process is being closely managed.”

FY19 production guidance has been increased by 7% to 6.5 million tonne, however a substantial uplift in development rates at Appin is required to sustain the operation of two longwalls in parallel from H2 FY20. This uplift in production guidance is expected to result in a commensurate reduction in our FY19 Operating unit cost guidance, on the basis of constant currency and price assumptions.

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Posted By : Rabi Wangkhem on Mon, 21 Jan 2019
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