Universal disappointed in Kangala delivery
PERTH (miningweekly.com) – South Africa-focused Universal Coal on Thursday told shareholders that its Kangala operation had again missed production expectations, with the mine delivering 11% less coal sales in the December quarter, compared with the previous three months.
Coal sales during the quarter under review reached 467 029 t, compared with the 524 284 t delivered in the previous quarter, despite a 12% increase in run-of-mine coal production from 686 900 t to 766 522 t.
Universal noted that production during the December quarter was adversely impacted by a combination of factors, including a focus on deferred waste stripping activities, in line with revised rock mechanic engineering requirements, fluctuations caused by the impact of the wet season, and disruptions experienced during the Christmas and New Year period.
In addition, sales figures were also impacted by a brief pause in deliveries to South African power provider Eskom, pending the finalisation of an extension to the current modified supply agreement.
Universal is the target of a takeover offer from fellow-listed Coal of Africa Limited (CoAL) in a deal valued at $91-million. The offer is conditional upon CoAL shareholder approval, at a meeting scheduled for February 29.
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