Total sales decreased by 25 per cent year on year from 3.3 million tonnes in the 2012 financial year to 2.5 million tonnes in the 2013 financial year.
This was due to the depletion of the group’s Vuna colliery and the derailment on the Maputo rail corridor.
The company, which released its financial year results on Friday, also reported that market conditions for export quality thermal coal had significantly deteriorated during the financial year, with the average price in dollars being 19.7 per cent lower than the previous financial year.
Revenue generated by the Mooiplaats and Woestalleen operations for the year declined to 145.4 million dollars from 242.5 million dollars in the 2012 financial year. The decline was due to a combination of reduced ROM coal availability, lower international coal prices compared to the previous year and a change of sales mix.
“Despite turbulent operating, market and labour conditions, a number of significant milestones were accomplished during the year including the investment of 100 million dollars and the signing of a Cooperation Agreement with strategic investor Beijing Haohua Energy Resource Co. Ltd (“BHE”),” [DATA CZA:Coal of Africa] said in a statement.
The completed Makhado Project DFS reflects the significant value of this project to the Company as well as the greater Limpopo province. Makhado has a net present value of 697 million dollars and is expected to cost 406 million dollars to build while the Company’s other three project areas in the Soutpansberg coalfield provide significant long term scalability for any investment.”
3.7 million Run of Mine (ROM) tonnes of coal were mined from the Vuna, Mooiplaats and Vele collieries, compared to the previous financial year’s 4.9 million ROM tonnes mined.
2.6 million tonnes of saleable thermal coal was produced, which was also a significant decrease from 3.1 million tonnes produced in the 2012 financial year.
The Maputo rail corridor derailment and strike action at the group’s Mooiplaats Colliery in 2012 resulted in reduced production of export quality thermal coal.
The company added that market conditions for export quality thermal coal had deteriorated significantly during the financial year, with the average price in US dollars being 19.7 per cent lower than in the 2012 financial year.
Total coal export sales from the Woestalleen, Mooiplaats Colliery and Vele collieries declined from 1.6 billion dollars in the 2012 financial year to a billion dollars, and total inland sales decreased from 923.1 million dollars in the previous financial year to 542.1 million dollars.
Sales to Eskom increased from 196.5 million dollars in the previous financial year to 216.4 million dollars.