JOHANNESBURG (miningweekly.com) − JSE-listed Optimum Coal said on Thursday that it had increased its production by 21% to 17.1-million tons, despite its Optimum Collieries missing targets.

During the period, Optimum, which also owns the Koornfontein mine, produced 6.8-million tons of export coal, and 6.8-million tons of Eskom-quality coal.

CEO Mike Teke said that the departure of the company’s former COO, Henry White, had resulted in a restructuring of the Optimum Collieries’ management team and a “renewed focus” on the effectiveness of coal exposure and extraction methodologies applied on the mine.

The company had 503 000 t of export stock available at its operations for railing to the Richards Bay Coal Terminal on June 30. Optimum said that it was affected by Transnet Freight Rail maintenance shutdowns, but anticipated an improved performance from the State-owned rail company in the coming year.

Optimum’s production is currently being affected by industrial action in the coal sector that has continued during the week. “We are in the process of resolving the strike with the Chamber of Mines and normal production will resume upon the settlement of the current dispute,” said Teke.

Coal workers walked off the job on Sunday after wage negotiations reached a deadlock. Employers are offering 8.5%, while unions are demanding pay rises of between 12% and 14%.
 

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