Keaton Mining, a subsidiary of Keaton Energy Holdings and a member of the Salungano Group, has secured a coal supply agreement (CSA) with Eskom Holdings SOC.
This agreement involves sourcing coal from the Vanggatfontein Colliery opencast coal mining operation in Mpumalanga, South Africa, for an Eskom-designated power station.
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Deliveries are set to commence on 1 November 2025, or at a later date if mutually agreed in writing.
The contract, anticipated to last for around five years and two months, will conclude upon the delivery of the total contracted energy quantity.
An estimated total of around 6.5 million tonnes (mt) of coal will be delivered over the duration of the CSA term on an “as received basis”.
This is contingent upon the contract’s calorific value assumptions and the specified monthly and annual delivery ranges.
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By GlobalDataThe Salungano Group’s board considers the execution of the CSA to be price-sensitive, which will ensure revenue certainty and aid in operational planning for the Vanggatfontein Colliery.
This agreement is pertinent to the group’s going-concern assessment, a key point highlighted in the audited consolidated financial statements for the year ended 31 March 2024.
The Vanggatfontein Colliery, owned by Wescoal, is an open-pit mining operation that extracts coal from the No. 5, No. 4 and No. 2 seams, producing an average of 340,000 tonnes per month of run-of-mine coal.
Further information about the CSA will be disclosed in the Salungano Group’s financial results and subsequent reports as deemed appropriate.
