Thungela navigates coal production hurdles amid global economic challenges

THUNGELA Resources management on Thursday said coal production in South Africa during the six months to June 30 was bolstered by incremental underground production.

- EDWARD WEST

However, the opencast operations, primarily at Isibonelo and Khwezela, were impacted by higher-than-expected rainfall, the chief financial officer Deon Smith said in a pre-close statement.

In Australia, production and export saleable product qualities in the first half were affected by challenging geology. Smith said Thursday that production is expected to improve in the second half of the year.

The share price fell by 4.81% on the JSE to R82.91 in the afternoon, continuing a decline from R111.46 a year ago.

Smith said they remained disciplined in executing strategy amid a challenging operating environment, characterised by volatile coal prices and fluctuating foreign exchange rates.

In South Africa, the Elders project began to produce export saleable production, while the Zibulo North Shaft project was on budget and on schedule for completion in 2026.

In Australia, the remaining stake in Ensham was acquired from co-investors.