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Wescoal Reports Loss in H1

Coal News - Published on Thu, 28 Nov 2019

Image Source: Wescoal
South Africa’s leading coal producer and distributor Wescoal has slipped into a loss in its six months to end-September, amid waning demand for coal and production challenges at some of its operations. The company reported a total net loss of ZAR 51 million for the period, from profit of ZAR 108 million in previous year, amid a 56% fall in coal production at its Vanggatfontein Colliery, where an extension project is under way. Group coal production fell 16%, with the company saying it would fast-track a process to exit contractor employees to address absenteeism and lower employee productivity. The company is also facing production difficulties at its Elandspruit colliery, where mining remains suspended after termination by the mining contractor in October 2018. Sales volumes in the trading segment reduced by 14% and revenue 13% to ZAR 707 million, with the company citing a decline in commodity prices and lower volumes driven by waning market demand.

CEO Reginald Demana said “Our key strategic objective is to stabilise our operations, then optimise our performance and scale-up through primarily organic opportunities. We intend to reach this objective by prudently managing costs and operational efficiencies to maximise returns from our current operations, and grow the business by exploiting the resources within our portfolio of assets with a disciplined approach.

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Posted By : Yogender Pancholi on Thu, 28 Nov 2019
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