Coal junior Keaton Energy expects first production from its Vanggatfontein project, in South Africa’s Mpumalanga province, before year-end, after having reached an “amicable” agreement with local landowners.

In April, the mining company 
announced that it would take legal action against four landowners that it said was blocking 
access to the project near Delmas.

At the time, it said it was seeking an order from the South African High Court to gain 
access to the property.

Keaton will now acquire the four properties totalling 
850 ha, with MD Paul Miller saying that the deal has been achieved through a compromise from both sides.

“We are delighted that we are now in a position to rapidly 
advance the Vanggatfontein project as we have secured 
immediate access to the site, with bulk earthworks to begin shortly, followed by a four-month plant construction period. The first No 5 Seam metallurgical coal is expected to be produced well 
before year-end,” Miller notes in a statement to shareholders.

Keaton approved the Vanggat-fontein project in November last year, with off-site fabrication of a 100-t/h coal processing plant having started in January.

Mining rights for the project came into effect in February when the company’s environmental management programme was approved.

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