Coal news and updates

Coal junior aims for 5Mt a year by 2017

JSE-listed coal junior Keaton Energy's medium-term goal is to grow to a five-million-tons-a-year coal producer by 2017; a step closer to its longer-term strategy of becoming a large coal producer.

The company planned to increase its production through its Koedelager and Braakfontein development projects, in KwaZulu-Natal, its Sterkfontein development project, in Mpumalanga, three prospects that could be developed as expansion collieries and projects and two prospects that may result in new development projects.

This was highlighted by Keaton Energy CEO Mandi Glad at a site visit on Tuesday to the company's Vanggatfontein colliery, located 14 km south-east of Delmas, in Mpumalanga.

Keaton Energy would also aim to diversify its product mix from mainly domestic thermal and anthracite coal to export thermal coal, as well as continue to improve the efficiency of its operations as it did in the first half of the 2014 financial year when it replaced a contractor, opened up another pit and optimised the front end of its plants.

Further, the company planned to increase its cash generation and advance its project pipeline.

The Vanggatfontein mine, which comprised five pits – three of which were being mined by privately owned multidisciplinary construction company Liviero, one that was mined out and one that was yet to be mined – had a production capacity of 300 000 t/m and mined 2-seam, 4-seam and 5-seam coal through an opencast mining method.

The mine site infrastructure comprised 600 t/h capacity coal washing facilities, which include a 100 t/h 5-seam coal washing plant – producing low contaminant, vitrinite dominant, bituminous duff, peas and nuts for the domestic metallurgical industry – and a 500 t/h coal washing plant producing domestic thermal coal for State-owned power utility Eskom. These facilities were currently operated by outsourced plant operation and maintenance specialist Minopex.

The infrastructure also consisted of a tailings facility operated by mining solutions company Fraser Alexander, twin-lined slimes facilities and a coarse discard facility with related water dams, drainage systems, water and power reticulation and a stockpile area.

Earlier this month, Keaton Energy reported that the Vanggatfontein colliery, which sold 1 198  000 t of coal for the first six months of the 2014 financial year, increased coal deliveries by 55% to its main consumer Eskom.

The mine was able to deliver 1.2-million tons of washed 2- and 4-seam thermal coal to Eskom in the first half of the 2014 financial year, compared with 738 498 t in the comparable half year.

Source: www.miningweekly.com