A fatality at its Vaalkrantz colliery, in KwaZulu-Natal, has prompted JSE-listed coal mining company Keaton Energy Holdings to not only review and revise its standard operating procedures (SoPs) and codes of practice (CoPs), but also retrain its staff to ensure improved safety levels.

During the night shift of February 4, Sihle Petros Xulu, a general worker employed by mining contractor Thata Dark Drill Enterprises, was fatally injured in an isolated fall-of-ground incident in the Enyati section.

“Immediately following this tragedy, we brought in a third party, a sector education and training authority-approved trainer, to retrain all mining staff, while external industry experts were also contracted to review certain SoPs and CoPs,” says Keaton CEO Mandi Glad.

Glad says this has resulted in more rigorous safety standards being implemented at the company’s operations.

She notes that, “disappointingly”, stock discrepancies were discovered at Vaalkrantz during the past quarter, resulting in multiple agencies launching a “thorough” investigation, which culminated in criminal charges being laid against an employee.

“The detection of coal theft at Vaalkrantz was a blow and, again, we have worked hard to overcome the challenge. “With depressed coal prices and increasing costs, coal mining is difficult enough without having to endure stock theft,” Glad laments.

Subsequently, Keaton replaced several management members at Vaalkrantz, including the mine manager, the safety manager and other senior staff members.

“We are not laying the blame for these incidents solely on the shoulders of the former management team at the mine. “However, from Keaton’s perspective, we needed to show our staff, investors and other stakeholders that we do not take these matters lightly,” states Glad.

Despite these setbacks, Keaton announced another record production year for the financial year ended March 31.

Thermal coal production was up 4% year-on-year, from 2.193-million tons in 2014 to 2.279-million tons. Metallurgical coal production was up 29% year-on-year, from 97 635 t in 2014 to 126 107 t. Anthracite coal production was up 30% year-on-year from 303 837 t in 2014 to 395 450 t.

Keaton’s Vanggatfontein colliery, in Delmas, Mpumalanga, delivered
2 278 761 t of washed 2- and 4-seam thermal coal to State-owned power utility Eskom during 2014, an increase of 4% over the previous year’s 2 192 519 t.

Sales of 5-seam metallurgical coal increased 29% year-on-year from 97 635 t in 2014 to 126 107 t.

Glad says the increased use of a dedicated 5-seam plant did not allow for any third-party toll washing and B-grade coal production was limited to 46 554 t.

“Negligible discard and slurry sales took place because of the materials being used for on-site activities.”

Glad points out that, despite the stock discrepancies owing to coal theft, Vaalkrantz managed to despatch 395 450 t of anthracite to local and international metallurgical markets, an increase of 30% over the 303 837 t
despatched during the previous year.

Keaton is currently in advanced discussions with Eskom for a coal supply agreement involving its proposed opencast Moabsvelden coal mine, in Mpumalanga.

Once an agreement has been reached, the construction of the mine, which will have a run-of-mine reserve of 42.6-million tons and an 18-year life-of-mine, will start.

“I believe that we have complied with most of Eskom’s requirements for an offtake agreement; the only matter that is still being resolved is the price at which the coal will be bought.

“However, I am confident that an agreement will be finalised in the next six to eight weeks,” Glad concludes.