Strategic Natural Resources delays first coal shipment amid teething problems

Strategic Natural Resources (SNR) announced Monday it has delayed the first shipment of coal from its Elitheni Mine in the Eastern Cape of South Africa.

Strategic Natural Resources (SNR) announced Monday it has delayed the first shipment of coal from its Elitheni Mine in the Eastern Cape of South Africa.

The company said the wash plant at the mine, which started operation last month, has experienced some 'commissioning teething problems' preventing it from reaching predicted output rates.

The first cargo of SNR has been pushed back to late January/February 2013 to make sure the wash plant is operating at optimal capacity before exporting through East London.

SNR will satisfy its contractual commitment for a late December/early January cargo through coal trading.

Manufacturer, PJ Technologies, have experts on site and they are confident they can improve wash plant up to predicted output rates in January.

On a more positive note, initial coal seam thickness reported greater than expected by Minxcon in the recent resources and related resources update. It will assist in reaching forecast production rates.

Staff recruitment and training is also on track, along with additional mining equipment which will arrive in January to help increase mining capacity.

David Nel, Chief Executive Officer, said: "I am very pleased overall with the operational progress made at the Elitheni mine. Whilst the wash plant output rate is not yet at peak production, I am confident, based on the commitment of the manufacturer, PJ Technologies, that this will be fixed in January.

"I am optimistic, based on what has been achieved during 2012, that the coming year will be a successful one for the Company and its shareholders."

The AIM-listed company has a market capitalisation of £41.04m. Shares fell 0.35% to 201.80p at 9:13 Monday.

RD

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
The after effects of the gas-price shock
Economy

The after effects of the gas-price shock

In the wake of the recent spike in the natural gas price, we can expect slower growth, an industrial recession – and a newly assertive Russia, says Ma…
17 Oct 2021