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Johannesburg - Coal exploration company Keaton Energy
Holdings [JSE:KEH] made a profit for its financial year ending March 31, it said on
Wednesday.
The company announced a total profit of R7 197 000.
This reflected coal sales from its Vanggatfontein Project in
Mpumalanga and its move from being an explorer and developer, to a coal
producer, the company said in a statement.
The first deliveries of coal from Vanggatfontein's Phase 1
development took place in December and the product was well-received by
customers, said CEO Paul Miller.
The first Eskom coal stockpile had been prepared and coal
deliveries were expected to begin in the coming days as soon as all quality
management procedures had been completed, he said.
Last year, subsidiary Keaton Mining signed a deal to supply
16.5 million tonnes of coal to Eskom.
The Vanggatfontein Project was expected to contribute
substantially to group earnings in 2011-12.
"The focus at the project will be on safely ramping up
4 and 2Seam plant production to meet the contracted coal supply commitment to
Eskom as soon as possible, while maintaining the production rate and market
acceptance of the 5Seam coal product," said Miller.
The group would focus on getting remaining approvals for its
acquisition of Leeuw Mining and Exploration so that it could complete the
turnaround of its Vaalkrantz Colliery and advance the development of its
Braakfontein thermal coal project near Newcastle.
Vanggatfontein produces thermal coal for Eskom and 5Seam
coal for the domestic metallurgical market and Vaalkrantz produces low-ash
anthracite for the domestic market and higher-ash anthracite for export
markets.
In 2012, these two operating collieries should assist the group become a robust and sustainable enterprise, and make significant advances towards achieving its longer-term target of becoming a mid-tier coal producer, Miller said.
