KEATON ENERGY HOLDINGS LIMITED - Keaton energy record production yearRelease Date: 06/05/2013 11:50:00 Code(s): KEH
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 RECORD PRODUCTION YEAR
Keaton Energy has released the following production update for the financial year ended 31 March 2013
ahead of the release in mid-June 2013 of the company?s year-end results.
- Improved safety performance
- Vanggatfontein Colliery Lost Time Injury Frequency Rate (LTIFR) of zero (0.38 FY12)
- Vaalkrantz Colliery LTIFR of 0.36 (0.45 FY12)
- Thermal coal production up 58% to 1.51Mt
- Metallurgical coal production down 20% to 392 000t
Keaton Energy?s Vanggatfontein Colliery delivered 1 509 681t of washed 2- and 4-Seam thermal coal to
Eskom during the year, an increase of 58% from the previous year?s 956 000t. As expected, 5-Seam
metallurgical coal sales declined, to 65 661t from 140 000t, as a result of Pit 1 5-seam coal being
depleted in line with the mine plan. The mine utilised the spare capacity of the 5-seam plant for the toll
washing of 106 000t of third party coal. The development of Pit 3 during the last quarter, however,
provides renewed and consistent 5- seam supply.
Although record safety and production performances were achieved at the colliery, this was in the face of
significant challenges in terms of the continuity of local electricity supply, continued poor performance of
the front end of the 2- and 4-seam plant and, of course, the transport workers? industrial action during
the middle of the year. Eskom have worked diligently to resolve the power supply issues, including a five
day supply change-out in December ? and we are starting to see benefits in this regard. Work still
remains to be done to reach acceptable performance at the front end of the plant.
Mandi Glad, Chief Executive Officer said, ?Although FY13 presented Vanggatfontein with some
challenges, I believe that these have been or will be overcome in the short term and I remain confident
that this financial year will be a year of massive growth for this long life operation?.
Vaalkrantz Colliery dispatched 327 000t of anthracite to domestic and international metallurgical markets,
a 7% decrease over the previous year?s 351 331t. The operation suffered from extremely difficult mining
conditions in the West Alfred section of the mine which limited production. However, it is pleasing to note
that despite these difficulties, the colliery?s safety performance improved.
Mandi Glad added ?We are pleased with the performance at Vaalkrantz in the face of extremely
challenging geological conditions.?
?We are now in a period of optimising the operations, advancing our internal pipeline of projects and
aggressively pursuing acquisition opportunities where these offer value uplift for our shareholders.?
Mandi Glad, Chief Executive Officer Tel: (011) 317 7000
Keaton Energy www.keatonenergy.co.za
Notes to Editors:
Keaton Energy Holdings Limited is a South African-based coal mining and development company,
producing thermal coal and a range of specialist coals. The company supplies product to SA?s electricity
utility, Eskom, and to the domestic and export metallurgical industries.
Keaton Energy has two operating collieries: Vanggatfontein Colliery and Vaalkrantz Anthracite Colliery
and three development projects. The company was listed on the JSE on 22 April 2008.
Monday, 6 May 2013
Date: 06/05/2013 11:50:00 Supplied by www.sharenet.co.za
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