JOHANNESBURG (miningweekly.com) – JSE-listed Optimum Coal’s run-of-mine (ROM) production dropped to 7.441-million tons in the first half of the 2012 financial year, from 8.789-million tons a year earlier.

The company on Friday reported a production drop of more than 20% for export/high-quality domestic coal, producing 2.903-million tons in the half year, compared with the 3.611-million tons produced in the six months to December 31, 2010.

Further, 3.018-million tons of Eskom-quality coal was produced, which was 11% down on the 3.4-million tons produced the year before.

"Generally, our overall production performance for the first half of the 2012 financial year was disappointing on the back of production challenges at Optimum Collieries, which adversely affected attributable ROM tonnage performance and consequent export sales volumes,” CEO Mike Teke said on Friday.

Meanwhile, the Koornfontein mine performed steadily throughout the period and was set to continue doing so on the back of an anticipated conclusion of a TNC acquisition.

In April last year, Optimum signed an agreement to acquire prospecting rights from Umcebo Mining for R420-million.

The company’s results for the six months ended December 31 would be released on February 9.