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Coal of Africa records drop in coal production in Q2

Oilfield Technology,

Coal of Africa recorded a drop in ROM coal production from 911,563 t in the previous quarter to 188,921 t in Q2, mainly due to the depletion of the Vuna coal mine resource and the closure of the Matola rail corridor.

Coal export sales down

Export sales were also down following the collapse of a bridge on the railway to the Matola terminal in Maputo, Mozambique. As a result, the company declared force majeure on shipments from the Mooiplaats, Woestelleen and Vele coal mines. Export sales declined from 271,060 in the previous quarter to 136,372 in Q2.

Makhado metallurgical coal project

The company released the Makhado metallurgical coal project definitive feasibility study (DFS) results during the quarter. The study indicates that the project has 344.8 million mineable t in situ and a 16 year life of mine. The project is expected to have an overall yield of 44.6%, producing 12.6 million tpa of ROM coal, yielding 2.3 million tpa of metallurgical coal and 3.2 million tpa of thermal coal for the domestic and or export market.

Commenting today, David Brown, executive chairman of Coal of Africa, said: “The release of the Makhado Project DFS is an important milestone for the company as it progresses its significant Soutpansberg coalfield coking coal resources. The Makhado project is the first step in the development of the Soutpansberg coalfield and in addition the submission of mining right applications for the Mopane, Chapudi and Generaal areas ,indicates the company’s long-term development plans for the Limpopo Province. Management will now focus on securing the required funding to develop the flagship Makhado project.”

Meanwhile, analysts at Investec said the DFS on the Makhado project indicated a “robust project, assuming a recovery in coking coal prices.”

Written by Jonathan Rowland

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