SOUTHERN AFRICA Keaton Energy Forging onwards to 5 Mtpa With plans to join the mid-tier coal producing playing field, Keaton Energy intends to hit the 5 Mtpa saleable coal mark by 2017. But just how achievable is that goal? CEO Mandi Glad updates Mining Review Africa on the company’s progress and strategy. IN SHORT To reach its 5 Mtpa goal, Keaton Energy is doing everything in its power to grow its annual production through both greenfields exploration and brownfields mine development as well as through mergers and acquisitions. I n the last six years, Keaton Energy has shown remarkable growth in its transition from a junior explorer to a coal producer, now consistently supplying a number of power stations for Eskom, its biggest customer by volume, with quality thermal coal thanks to the increased output at its Vanggatfontein colliery in Delmas, Mpumalanga. This was not always the case, Glad admits, saying that “our relationship with Eskom was difficult initially because we weren’t performing and Eskom needs consistent supply. In Vanggatfontein’s early days, we faced challenges that prevented us from meeting our targets. The plant is however consistently performing today and our relationship with Eskom is a good one.” Even during the challenging December period, which included Christmas road transport embargoes, holidays and wet weather, Vanggatfontein delivered 521 078 t of washed 2 and 4-seam thermal coal to Eskom in the quarter, an increase of 26% over the corresponding quarter. The colliery has thus delivered 1.66 Mt to Eskom in the first nine months of this financial year compared with 1.15 Mt in the previous year, an increase of 44%. Vanggatfontein Vanggatfontein also produces metallurgical coal for domestic industrial consumers, and 5-seam metallurgical coal sales for the quarter increased by 66% over the corresponding period last year to 23 747 t. Sales for the year to date were 78 901 t, an increase of 73% over the corresponding period last year. Glad is thrilled with the colliery’s progress. “Vanggatfontein is doing extremely well. We are meeting and exceeding our targets every quarter. Wash plant at Vaalkrantz 14 MINING REVIEW AFRICA ISSUE 2 2014