February 2014
MODERN MINING
5
MINING News
Keaton Energy, which operates the
Vanggatfontein opencast coal mine near
Delmas in Mpumalanga and the Vaalkrantz
anthracite mine in KZN, has released a
quarterly production update for the period
ended 31 December 2013.
The safety performance at Vanggat
fontein improved to a LTIFR of 0,09 whilst
that at Vaalkrantz declined to 0,31.
Despite challenges with 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
in 2012. The colliery has thus delivered
1,66 Mt to Eskom in the first nine months
of Keaton’s 2014 financial year compared
with 1,15 Mt in the previous year, an
increase of 44 %.
Keaton reports that 5-seam metallurgi-
cal coal sales for the quarter increased by
66 % over the corresponding period in
2012 to 23 747 t. Sales for the year to date
were 78 901 t, an increase of 73 % over the
corresponding period in 2012.
No third party coal was washed during
the period as plant capacity was fully uti-
lised by own coal. Discard and slurry sales
New exploration
programme at
nickel project
Australia’s IMX Resources reports that a
multi-pronged exploration programme has
commenced at its Ntaka Hill nickel sulphide
project in south-eastern Tanzania, as part of
an aggressive campaign to ‘crack the code’
of what it terms “this potentially outstand-
ing project”.
The work will see joint venture partner
MMG Exploration Holdings (MMG) conduct
a comprehensive analysis of the extensive
geophysical data acquired and the drill-
ing completed late last year at Ntaka Hill,
together with extensive historical drilling,
in order to identify targets characteristic of
the high-grade nickel sulphide intersections
recorded in previous drilling programmes.
This work is expected to pave the way for
the next key phase of drilling which is tar-
geted to commence next quarter following
the East African wet season.
By marrying the new geophysical data
base with the existing high-grade drilling
results, the ability to increase understanding
of the geology and mineralisation at Ntaka
Hill and replicate the existing high-grade
results on a widespread basis will be greatly
enhanced.
The Ntaka Hill exploration programme,
which is being operated and funded by
MMG under the terms of its US$60 million
farm-in, is aimed at identifying the tube-like
structures or ‘chonoliths’ which are believed
to host the high-grade nickel sulphides at
Ntaka Hill and the surrounding Nachingwea
project.
These structures are thought to host
the high-grade intersections, including
13,65 m at 3,46 % nickel and 0,62 % copper
(NAD13-372) reported in recent drilling, and
previous intersections drilled by IMX such as
17,25 m at 2,28 % nickel and 0,57 % copper
(NAD10‑226)2 and 15,95 m at 3,51 % nickel
and 0,55 % copper (NAD10-220).
MMG is targeting a resource in the order
of 27 Mt grading at or above 1,5 % nickel for
Ntaka Hill and Lionja based on a geological
model of chonolith-hosted high grade nickel
sulphides within the large nickel rich mag-
matic Ntaka Hill-Lionja intrusion.
The current measured and indicated
resource for Ntaka Hill stands at 20,3 Mt at
0,58 % nickel and 0,13 % copper for 117 880
tonnes of contained nickel. The inferred
resource is 35,9 Mt at 0,66 % nickel and
0,14 % copper.
were 87 969 t, down 27 % compared with
the corresponding quarter in 2012 due to
poor weather impacting on the reclama-
tion process. Discard and slurry sales for
the year to date were 643 932 t, an increase
of 120 %.
Production at Vaalkrantz colliery contin-
ued to be affected by difficult geological
conditions. The colliery sold 61 496 t of
anthracite to domestic and export custom-
ers during the quarter, down 37 % over the
same period in the previous year. Year to
date, the sales have been 215 641 t, down
13 % over the corresponding period in
2012.
“Vanggatfontein continues to pro-
duce to plan both in terms of production
and, importantly, cash generation,” com-
ments Mandi Glad, Keaton Energy CEO.
“With the Xceed transaction due to close
in early 2014, we look forward to devel-
oping another successful mine adjacent
to Vanggatfontein and integrating the
two mines into a significant, long-term
operation.”
She adds that the Vaalkrantz operations
remain a challenge as they near the end of
the life of mine but notes that replacement
capacity projects are proceeding well.
Mining operations at Vanggatfontein. The mine delivered 521 078 t of washed 2- and 4-seam thermal
coal to Eskom in the December quarter (photo: Keaton Energy).
Vanggatfontein produces to plan
