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Johannesburg - Black economically empowered miner Baphumeleli Resources is targeting a coal production figure of 100 000 tonnes per month by the end of November.
Spokesperson Sipho Khumalo says this will be evenly spread over four projects. “Currently, the company has two off take agreements which, collectively, produce about 100 000 t/m of coal.”
He adds that the company is planning to commission a further two coal mines by mid-2014, bringing yearly production to just over 1.8 million tons from our own mines and 1.2 million tonnes from the off take.
"We are very happy that as small as we are, we have a monthly revenue of R35m per month. The two mines will add a further R43m turnover to our books."
Although Baphumeleli is focused on the domestic market, it has not taken its eye off the possibility of broadening its horizons to market its product internationally.
“The coal that the company is producing at the moment is export quality; however, being a new entrant to the market poses its challenges. Baphumeleli Resources will establish itself as a solid domestic supplier of coal and then look to the export market,” said Khumalo.
Baphumeleli's recent acquisition of a subsidiary has given it access to the coal supply agreement with Eskom.
One on the biggest mines that the company owns is LLG coal, in Sasol, Free State.
According to the coal miner, the group is rapidly moving towards being a primary producer with a strong trading arm rather than the historical trader with a production facility. "This will have a number of benefits but, most importantly, will reduce the vulnerability of having a single major revenue generating division."
Baphumeleli Resources said it is also looking at the opportunity of shale gas exploration.
Spokesperson Sipho Khumalo says this will be evenly spread over four projects. “Currently, the company has two off take agreements which, collectively, produce about 100 000 t/m of coal.”
He adds that the company is planning to commission a further two coal mines by mid-2014, bringing yearly production to just over 1.8 million tons from our own mines and 1.2 million tonnes from the off take.
"We are very happy that as small as we are, we have a monthly revenue of R35m per month. The two mines will add a further R43m turnover to our books."
Although Baphumeleli is focused on the domestic market, it has not taken its eye off the possibility of broadening its horizons to market its product internationally.
“The coal that the company is producing at the moment is export quality; however, being a new entrant to the market poses its challenges. Baphumeleli Resources will establish itself as a solid domestic supplier of coal and then look to the export market,” said Khumalo.
Baphumeleli's recent acquisition of a subsidiary has given it access to the coal supply agreement with Eskom.
One on the biggest mines that the company owns is LLG coal, in Sasol, Free State.
According to the coal miner, the group is rapidly moving towards being a primary producer with a strong trading arm rather than the historical trader with a production facility. "This will have a number of benefits but, most importantly, will reduce the vulnerability of having a single major revenue generating division."
Baphumeleli Resources said it is also looking at the opportunity of shale gas exploration.
