Coal of Africa production hit by derailment in Mozambique

Coal of Africa said it has halted production after a derailment in Maputo, Mozambique, which had a negative impact on the transportation of resources.

Coal of Africa said it has halted production after a derailment in Maputo, Mozambique, which had a negative impact on the transportation of resources.

Rail traffic between Komatipoort and Maputo was suspended after the derailment of 10 wagons forced the company to temporarily stop some of its operations.

"The existing stockpiles at Vele are at full capacity and have resulted in the temporary suspension of production," the company said.

"This suspension will preserve cash resources by reducing costs as the colliery is currently in developmental and product testing phase."

Production will resume within the next 24 hours once the Transnet Freight Rail recommences on the network.

Output at Mooiplaats and Woestalleen will continue until stockpile capacity is exhausted.

The group's subsidiaries Limpopo Coal Company, the holding company for the Vele colliery, and NuCoal Mining, the holding company for Woestalleen, have issued force majeure notices to their customers, contractors and other affected stakeholders.

"The company will implement measures at all operations to mitigate the commercial and operational impact of this force majeure," the firm said.

In the second quarter of 2013, the company reported production of 1,153,486 tonnes run of mine coal of which 194,495 tonnes was produced by the Vele Colliery.

Coal of Africa exported 411,297 tonnes for sale. It sold 418,355 tonnes to the domestic (inland and Eskom) market in the same period.

RD

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021