Following announcements in February regarding the application to place JSE-listed Salungano’s wholly-owned subsidiary Keaton Energy’s wholly-owned subsidiary Keaton Mining under supervision and to begin business rescue proceedings, the matter has been heard on an urgent basis on March 28.
Judgment in the matter was delivered on April 2, with the business rescue application being dismissed.
Having considered the merits of the judgment, a notice of appeal against the judgment will be lodged on April 3.
Salungano emphasises that Keaton Mining comprises solely of the operations of the Salungano Group of companies located at the Vanggatfontein Colliery, in Mpumalanga, and does not represent the main revenue-generating operations of the group located at the Moabsvelden Colliery, under the subsidiary Neosho.
As set out in another announcement, production at the Vanggatfontein Colliery continues.