44.4Mt (FY15: 49.2Mt)
113.7Mt (FY15: 119.3Mt)
60tph filter press
Contribution to group performance
|Strip ratio achieved||2.8||2.9||(3)|
|Fatality-free man hours||7 143 666||5 673 673||26|
|Number of employees (including contractors)||550||513||7|
|Revenue (Rm)||1 032.1||1 181.1||(13)|
|Gross profit (%)||16||18||(11)|
|Operating profit (Rm)||177.9||203.8||(13)|
The Vanggatfontein operation comprises a contractor-operated opencast mine which delivers 5, 4 and 2 seam ROM coal to our two coal handling and processing plants – a 100tph 5 seam plant and a 500tph 2 and 4 seam plant. Both plants are owned by Keaton Mining but operated by a specialist contractor. The 2 and 4 seam products are trucked and/or railed to Eskom and the 5 seam products trucked to various domestic metallurgical customers.
Vanggatfontein reported a 0.14 LTIFR (FY15: 0.10). Zero harm remains a key focus for the group and safety is of paramount importance.
Vanggatfontein continued its excellent performance during the year while continuing to supply Eskom and 5 seam domestic metallurgical clients. The colliery delivered 2.2Mt washed 2 and 4 seam thermal coal to Eskom, a decrease of 2% on the previous year. Sales of 5 seam metallurgical coal was 0.1Mt in line with the geological model. Discard, slurry and B-grade sales were negligible. The filter press plant was commissioned in June 2015 and was completed on time and within budget. The filter press plant adds a revenue stream to the operation while both reducing our environmental footprint and dramatically improving water recovery from the tailings stream.
The current Vanggatfontein ROM Coal Reserve will sustain a 20-year life. Eskom’s demand is expected to continue increasing, positioning Vanggatfontein, as a primarily Eskom-focused producer, for continued growth.
Subsequent to year-end, the long-standing dispute with Megacube Mining Proprietary Limited relating to several breaches of the contract mining agreement at Vanggatfontein was resolved in Keaton Mining’s favour at arbitration.
No Coal Reserve declared (FY15: 2.0Mt)
11.3Mt (FY15: 11.5Mt)
Estimated 4.5 years
110tph two‑stage DMS
Contribution to group performance
|Fatality-free man hours||1 433 947||286 893||>100|
|Number of employees (including contractors)||279||883||(71)|
|Gross loss (%)||(18)||(3)||>100|
|Operating loss (Rm)||(142.9)||(107.1)||33|
Vaalkrantz comprises the Enyati and West adits which provide access to the high-quality Alfred and Gus seams of the Vryheid Coalfield. Generally, mining conditions in the KZN coalfields are among the most challenging in the South African coal industry. The seams are narrow and the intensity of dolerite dykes and sills, which are responsible for the creation of the anthracitic-quality coal seams, make underground planning and operation very complex. ROM production is trucked from the respective adits to the central double-stage DMS CHPP where sized products of various qualities are produced. All of our saleable coal is trucked from the plant to our boomlaer rail siding near Hlobane, from where products are either trucked or railed to both domestic and export customers.
Vaalkrantz Colliery reported a LTIFR of 0.06 (FY15: 0.22). The LME group incorporating Vaalkrantz Colliery was classified as “held-for-sale” during the year and a sale process was initiated. In February 2016, KEH concluded an agreement with BER to dispose of its wholly owned subsidiary LME thereby exiting the group’s exposure to anthracite operations and projects entirely. Post-year-end, Vaalkrantz Colliery was placed on care and maintenance notwithstanding continuous efforts by both LME and BER to minimise the losses exacerbated by the ongoing global decline in coal prices, force majeure declared on LME by its biggest customer and the unavailability of water due to the continued drought in the region. LME embarked on a section 189A process for the retrenchment of all employees during April 2016 which was finalised and became effective on 31 May 2016. Coal sales for the year were 45 556t domestic (FY15: 142 176t), 70 600t export (FY15: 138 300t) and 185 799t high ash (FY15: 114 974t).
* Vaalkrantz Colliery was sold as part of the sale of LME during FY16 and was placed on care and maintenance post year-end.