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

Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares in the week ending 5 August, providing an insight into how investors are thinking and where opportunities may l…
9 Aug 2022
Where to find inflation-resistant stocks
Investment strategy

Where to find inflation-resistant stocks

Terry Smith’s latest update contains some valuable pointers for investors looking to protect against inflation.
8 Aug 2022
A low-risk way to beat inflation
Share tips

A low-risk way to beat inflation

Demand for care-home places is strong and the sector should be able to raise prices ahead of costs, says Max King.
8 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022