JOHANNESBURG (miningweekly.com) - A strike over wages by workers in South Africa’s freight transport sector could have an impact on junior miner Keaton Energy’s performance in the next six months, CEO Mandi Glad warned on Wednesday.

She said both the JSE-listed company’s Vanggatfontein mine, near Delmas, and Vaalkrantz anthracite colliery, near Vryheid, were affected by the ongoing truck drivers’ strike, which started in the last week of September.

“The current labour relations situation in South Africa is a great cause for concern, especially the road freight strike which is likely to have an impact on our performance in the second six months the financial year,” said Glad, who took over as Keaton CEO last month.

She added that the full impact of the strike was not yet clear.

Keaton produced 737 877 t of 4-seam and 2-seam coal from its flagship Vanggatfontein mine in the first six months of the 2013 financial year, ended September, compared with 230 041 t in the first-half of 2012.

From its Vaalkrantz anthracite colliery a total of 57 904 t of mid-ash export anthracite was produced and sold during the period under review, compared with the 2012 first half production of 91 374 t, while 93 344 t of premium low-ash anthracite was sold into the domestic metallurgical market, compared with 114 341 t a year earlier.

However, the company has suffered some setbacks at Vanggatfontein, with only 31 272 t of 5-seam coal being sold into the domestic metallurgical market, down nearly 68 000 t from the 99 233 t sold in the first half. 

Meanwhile, Glad said in a statement the company would continue to actively assess external growth opportunities, while it continued to advance its internal project pipeline.

“Work is under way to advance the Braakfontein project and to complete the conceptual study on the Sterkfontein project,” she stated.

Last month, Glad told journalists that the company was actively pursuing acquisition opportunities, with a focus on areas with higher quality coal, such as Witbank and Ermelo.

Keaton Energy has set a production target of five-million tons a year within the next three to five years.