29 / 64
COAL
mine is on the path to recovery after having
being set back due to the fraud and corrup-
tion. Located 20 km east of Vryheid in KZN,
the mine is a relatively small operation with its
infrastructure including two shaft complexes
(comprising four underground access portals)
and a two-stage 110 t/h anthracite washing
plant producing duff, peas and nuts.
Keaton reported in late September this
year that it had received an offer for the assets
of Keaton subsidiary Leeuw Mining and
Exploration, including Vaalkrantz (but exclud-
ing Braakfontein) so it is possible that the mine
will exit the Keaton group. “We are certainly
not averse to selling,” says Glad. “Vaalkrantz is
not a huge contributor to Keaton and yet it con-
sumes huge amounts of management time. It’s
a sound asset, though, and could do extremely
well in the right hands.”
Summing up, Glad expresses the view that
Keaton is in a strong position currently. “The
international coal market is a disaster area but
we have only very limited exposure to it so
we’re in a far better position than many of our
peers. Vanggatfontein is doing exceptionally
well with a viable coal agreement in place with
Eskom which still has several years to run and,
as I’ve said, we’re under no pressure to imme-
diately develop our assets such as Moabsvelden
and Braakfontein. The immediate task ahead for
us is really to further fine tune Vanggatfontein
and, assuming we end up retaining Vaalkrantz,
continue its recovery. Overall, Keaton is an
extremely healthy company which deserves a
better share price than it currently enjoys.”
Photos courtesy of Keaton Energy
A Liebherr 984 hydraulic
excavator loading 4-Seam
coal onto a Cat 777D rigid
haul truck in the VG2 pit.