Go Back Email this Link to a friend

KEH - Keaton Energy Holdings Limited - Keaton Energy to supply 16.5 million

Release Date: 20/07/2010 10:24:01      Code(s): KEH
KEH - Keaton Energy Holdings Limited - Keaton Energy to supply 16.5 million     
tonnes of coal to Eskom                                                         
Keaton Energy Holdings Limited                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 2006/011090/06)                                            
JSE share code: KEH  ISIN: ZAE000117420                                         
("Keaton Energy" or "the company")                                              
Keaton Energy announced today that its 74%-held subsidiary, Keaton Mining (Pty) 
Limited, has concluded negotiations with South African power utility Eskom to   
supply 16.5 million tonnes of steam coal from Phase 2 of its new Vanggatfontein 
Project, near Delmas in South Africa`s Mpumalanga Province.                     
The No 2 and No 4 seam coal will be mined from an open pit for a seven-year     
period beginning in April 2011 and will be supplied to various Eskom power      
stations. Production will start at 50 000 tonnes per month (tpm) and ramp up to 
200 000 tpm by July 2011.                                                       
Last month, Keaton Energy announced its intention to spend some R158 million,   
inclusive of surface right acquisitions, on the immediate development of Phase 1
of Vanggatfontein to produce up to 30 000 tpm of sought-after, high-quality No 5
seam metallurgical coal from October 2010 for the domestic market.              
Keaton Energy Managing Director Paul Miller said: "The offer to supply Eskom,   
which remains conditional on the conclusion of a Coal Supply and Off-Take       
Agreement between both parties, means we can also proceed with the development  
of Phase 2 of Vanggatfontein at a cost of some R180 million.                    
We expect to achieve our targeted sales of two million tonnes of coal a year    
from the Vanggatfontein Project in 2012."                                       
Miller said that, while Keaton Energy had sufficient funds to develop           
Vanggatfontein Phases 1 & 2, the company would seek to raise "some" debt finance
in order to reduce the overall cost of capital of the Vanggatfontein Project and
to continue with the exploration programme and feasibility studies at its second
long-term project, Sterkfontein, also in Mpumalanga Province.                   
Queries:  James Duncan                                                          
         Russell & Associates                                                   
         +27 11 880-3924 (office)                                               
         +27 82 892 8052 (mobile)                                               
20 July 2010                                                                    
Nedbank Capital                                                                 
Date: 20/07/2010 10:24:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.