SA Coal of Africa half-year loss widens by 50% on strikes, lower prices.

By bne IntelliNews March 18, 2013
South African producer of thermal and coking coal Coal of Africa (CoAL) said its loss for the six months to end-December 2012 deepened to USD 111.7mn from USD 74.7mn, driven down by USD 50mn impairment at its Mooiplaats colliery, which was hit by an illegal wage related strike action in September. In addition to the work stoppage, which resulted in lower output, Mooiplaats was hurt by lower coal prices and higher logistical costs, CoAL said in a bourse filing. The miners total revenue from the sale of coal for its fiscal H1 fell 31% y/y to USD 87.3mn as a result from the lower coal prices, reduced production and lower sales volumes. CoAL produced 1.05 million tonnes of export quality coal during the six months to end-December 2012, down from 1.21 million tonnes in the six months to end-June 2012. Export coal sales fell to 636,264 tonnes from 863,893 tonnes, while coal sales on the domestic market declined 13% to 341,685 tonnes. Sales of middling coal to South Africas national power utility Eskom increased by 25.9% to 473,154 tonnes. CoAL has three operating collieries in South Africa, producing thermal and coking coal for the domestic and export markets. Hong Kong-based Haohua Energy International (HEI), a wholly-owned subsidiary Beijing Haohua Energy Resource (BHE) recently injected USD 100mn in CoAL, in exchange for a 23.6% stake in CoAL, and aiming to support the development of CoALs Makhado project in the Limpopo province, which is targeted to supply between 2.4 million and 5 million tonnes of coal needed in metallurgical processes annually to both domestic and foreign clients. Beijing Haohau Energy Resource Company produces coal and is the largest exporter of anthracite coal from China.

Related Articles

South Africas Exxaro mulls firing striking coal miners.

South African company Exxaro Resources said one of the options it currently considers is dismissing striking coal mine workers who fail to return to work in the week of March 25, fin24 reported ... more

South Africas Telkom says there is no decision to lay off 13,000 employees.

South Africas telecommunication operator Telkom said that it has not made a decision on retrenching 13,000 employees, or more than half of its staff, TechCentral reported quoting a company ... more

BP, Masana Petroleum Solutions sell LPG business in South Africa.

Oryx Energies, a major independent provider of oil and gas products and services in Africa, has agreed to buy the South African liquefied petroleum gas (LPG) distribution businesses of BP and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss