JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal says the integration of Keaton Energy, which it acquired for R526.8-million earlier this year, is progressing well.
In a strategic update to shareholders, published on Wednesday, the company said the targeted cost savings through synergies and optimisation of management and systems were on track.
“Many specific procurement-related cost saving initiatives have been identified and are being implemented immediately.”
From March 2018, the former Keaton head office building and rental costs will also be discontinued, resulting in further savings.
The coal miner further noted that production from the combined operations are on track to achieve the eight-million-ton-a-year production target.
Meanwhile, Wescoal reiterated that it wants to play a role as a consolidator in the junior coal mining sector and that it will continue to consider value enhancing growth opportunities.
Inorganic growth initiatives will be focussed on acquiring additional resources and strategic interests in key coal-related infrastructure.