Thungela Resources on track to exceed 2025 coal production targets

THUNGELA Resources' management are confident of producing about 13.7 million tons of export saleable production for the year to December 31, 2023, which is above the guidance range of 12.8Mt to 13.6Mt.

- EDWARD WEST

THUNGELA Resources' production momentum during its 2025 financial year benefitted from "consistent rail performance" and improvements by Transnet Freight Rail (TFR), with an annualised 56.6Mt run-rate for the industry for the period ended November 30, 2025, which is a 9% improvement on the 51.9Mt delivered in 2024. SUPPLIED

The coal mining group's chief financial officer Deon Smith said in a pre-close update that the production is in spite of the transition in its South Africa production profile, with the closure of Goedehoop and the successful ramp-up of Annea Colliery, as well as the handover of the Zibulo North Shaft project.

Production momentum also benefitted from "consistent rail performance" and improvements by Transnet Freight Rail (TFR), with an annualised 56.6Mt run-rate for the industry for the period ended November 30, 2023, which is a 9% improvement on the 51.9Mt delivered in 2022.

In Australia, export saleable production from Ensham was expected to be 3.8Mt, within the guidance range of between 3.7Mt to 4.1Mt.

At the end of the first half, there had been a higher stockpile of lower quality run-of-mine coal after more challenging geology was mined through at Ensham, but the Dubai marketing team successfully secured contracts for the coal, which resulted in improved sales and lower stockpiles.