Coal of Africa Limited's run-of-mine production fell 23% to 3.78 million mt of (ROM) mt in its 2012/13 year, with activity hit by a blocked rail line, flooding at a colliery, and strike action.
CoAL also said Friday it processed 3.37 million mt of ROM coal during the year, down 31% and resulting in a 17% fall in production of saleable coal to 2.61 million mt.
"Market conditions for export quality thermal coal deteriorated significantly during the financial year, with the average price in US dollars being 19.7% lower than FY2012," executive chairman David Brown said.
CoAL declared force majeure at its Mooiplaats, Vele and Woestalleen collieries from mid-February to May while a bridge on the Maputo rail corridor was repaired after being damaged by a derailed train.
CoAL said the Woestalleen complex -- which comprises the Vuna colliery and three beneficiation plants -- produced 2.5 million mt of ROM coal, down 30%. The Vuna colliery resource was depleted during March with the producer having agreed to sell the complex, as previously reported.
The Mooiplaats thermal coal colliery produced 755,251 mt of ROM coal during the year, down 38%. Industrial action over pay hit output for six weeks from September 25, 2012.
The Vele thermal and coking coal colliery managed to more than triple ROM output to 536,846 mt, despite two force majeure declarations caused by flooding after heavy rain and the Maputo derailment.
CoAL produced 1.43 million mt of export coal during the year, down 40%, while middlings coal output climbed 62% to 1.18 million mt, meaning total coal sales fell 25% to 2.54 million mt.
Due to the reduced rail capacity, combined export sales from the Mooiplaats, Vele and Woestalleen, collieries through Mozambique's Matola Terminal fell 37% to 1.04 million mt.
Sales to state-owned power utility Eskom rose 22% to 958,194 mt, while sales of export-quality coal to the inland market fell 41% to 542,103 mt.
