https://www.miningweekly.com

Mgojo confident Exxaro will meet full-year coal production targets

27th June 2019

By: Nadine James

Features Deputy Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Exxaro Resources CEO Mxolisi Mgojo is not “too worried” about the expected 5% decline in the miner's coal production for the first half of this year, as he expects the company will meet its full year targets.

The company on Wednesday attributed the expected decline in its coal output to reduced demand from State-owned power utility Eskom.

However, Mgojo, speaking on the sidelines of The Digital@Exarro Show & Tell event on Thursday, noted that, “at the same time last year, we were one-million tonnes down on production. By the end of the year, not only had we met our target, we exceeded it by 400 000 t.”

He added that there were no immediate plans to alter Exxaro’s coal production in light of lagging domestic and international demand, adding that the ramp-up at its Mafube mine, as well as the commissioning of its Belfast operation were continuing apace.

The latter is six months ahead of schedule and is already producing run-of-mine ore.

Mgojo noted that, “the only thing that has had a negative impact is the time it has taken to get some of our capital from Eskom”, adding that this, as well as the project delays that resulted from Exxaro terminating Group Five’s contract at the Grootegeluk mine, were challenges beyond Exxaro’s control, but which had been mitigated by the team.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION