JSE-listed black-owned mining com- pany Optimum Coal expects to export less coal than forecast from its rain-hit opencast mines.

Optimum forecast that it would export 5,4-million tons of coal from its Optimum collieries in the 12 months to June 30, but has now lowered that forecast to five-million tons – 400 000 t, or 7,4%, less.

Its forecast of 5,1-million tons to power utility Eskom remains, however, in line with its contractual commitments.

“Opencast sections have been adversely affected by the extremely high rainfall,” Optimum Coal CEO Mike Teke said.

The 100%-owned Optimum mine’s underground section made “excellent progress” and there is no downward revision at the com- pany’s 96%-owned Koornfontein underground mine, also unaffected by rain.

The forecast for Koornfontein to June 30 is 2,9-million run-of-mine (RoM) tons, 1,74-million export tons and 1,4-million Eskom tons.

The company sells its Koornfontein export coal through the Mercuria Energy group and exports coal from the Optimum colliery through BHP Billiton Energy Coal South Africa (Becsa). It will also sell export coal from new projects through Mercuria, which has shares in the listed entity.

Koornfontein’s life-of-mine plan is being reviewed to extract more export coal and simultaneously make better use of underused infrastructural capacity.

Optimum sold R3,9-billion worth of coal in 2009, when its earnings before interest, tax, depreciation and amortisation (ebitda) was R1,4-billion, giving an ebitda margin of 36%.

Last year’s volume totalled 9,3-million tons, of which four-million tons – some 45% – was exported.
Optimum – South Africa’s sixth-largest thermal coal producer and its fourth- largest exporter, after Anglo Thermal Coal, Becsa and Xstrata Coal – supplies Eskom’s Hendrina power station and there is potential for Koornfontein to supply Eskom’s nearby Komati power station.

The large opencast and underground Optimum complex, with four coal pro- duction areas, has reserves of 270-million RoM tons, of which 191-million tons are saleable.

Koornfontein, which is situated 25 km from the Optimum operation, has a 46,5- million-ton RoM reserve, of which 30,7- million tons are saleable.

Becsa previously owned both the Optimum and Koornfontein mines.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.