Following the temporary closure of operations at Masama Coal Mine in Medie last month, there is light at the end of the tunnel for Minergy Limited.
With work tentatively starting-up again on Monday 3rd April, the company also announced their losses for the second half of 2022 dropped by 37 percent.
Having endured a loss before tax of P91 million in the opening six months of the year, Minergy bounced back slightly to record losses of P58 million between and July and December.
Working at full production – 125, 000 tonnes a month – to maximize on demand in Europe, the mining giant’s saw their revenue increase from P134 million in 2021 to P330 million last year.
Sales averaged out at 65, 000 tonnes per month, including four successful deliveries to the west, dispatched from Walvis Bay in Namibia.
However, global prices for the black rock have dropped significantly since mid December, with Europe’s need for coal low following the region’s warmer-than-usual winter.
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With this in mind, Minergy brought a halt to their seaborne exports.
Despite this, regional demand for coal remains strong, prompting the company to continue operations, albeit at a scaled down level.
In their efforts to get back to work, Minergy struck a short-term agreement with their contractor, Jarcon Opencast Mining, pending payment of overdue balances and further discussions with various funding parties.
“This is undertaken in the spirit of being extremely conscious, aware and sensitive for job losses and reductions, the loss of economic activity in villages around the mine and the continued need to continue to support our loyal customer base. The start-up operations are in line with robust cost reviews and significant cost reductions identified to reduce the saleable cost of coal to ensure a viable operation. These cost reductions will be stringently implemented and monitored,” announced Minergy Chief Executive Officer (CEO), Mornè du Plessis last week.