Uitkomst Colliery: The turnaround plan aims to introduce operational changes
At the Utrecht Coalfields, KwaZulu Natal Province, South Africa, the Uitkomst steelmaking coal colliery completed intensive re-engineering and operational reviews, resulting in the development of a performance improvement plan for the colliery (the Turnaround Plan). The plan will be in full implementation during the coming quarter.
The Turnaround Plan aims to introduce operational changes that will lower operating costs and deliver a commercially viable business, given the low coal price environment, and a mature underground mine that hosts significant high quality coal reserves. Coal preparation plant yields were pleasing at 69% which helped offset the lower than planned ROM coal tonnes mined.
The colliery mined 104,129t of ROM coal during the quarter, which was a
3% increase on the previous quarter, though 9% decrease on 2024 (FY2024 Q4: 113,977t). The 9% decrease in ROM coal production compared to the same period the previous year was due, in part, to disruptions in production whilst reconfiguring the underground mining layout as part of the Turnaround Plan and due to lower coal seam mining heights than was expected in some sections.
Outlook is for an improvement in coal seam mining heights over the next quarter as the operating sections continue to move through the low seam zones. Underground mining fleet condition assessments and remediation plans have commenced to be implemented during the quarter. More modifications made to the coal preparation plant in combination with a greater proportion of coal being mined from higher yielding sections of the mine saw plant yields remain high at 69% for the quarter.
Uitkomst sold 68,020t (FY2024 Q4: 62,274t) of high-grade duff and peas coal, a 9% improvement on the same period last year. The colliery sold no middlings coal during the three months (FY2024 Q4: 10,099). The colliery had 1,518t (FY2024 Q4: nil) of high-grade coal inventory at the end of June 2025.
The production costs per saleable tonne were 9% lower than the comparative period in 2024 (FY2025 Q4: US$88/t vs. FY2024 Q4: US$96/t). The increase in sales volumes and improved plant yields resulted in the decrease in unit production costs.
Outlook
Uitkomst Colliery, as of the end of the quarter, has commenced with the implementation of
the Turnaround Plan. The focus remains on implementing initiatives to reduce unit operating costs whilst improving safety performance. The Turnaround Plan is being implemented with the assistance of Metalla Tutum Engineering Proprietary Limited (MTE). MTE is a South African specialist mining engineering and consulting firm, established in 2017, with expertise in mine management and operational improvements.
