Keaton Mining, a subsidiary of Keaton Energy Holdings and part of the Salungano Group, has signed a coal supply agreement (CSA) with Eskom Holdings SOC Ltd.
Under the agreement, coal will be sourced from the Vanggatfontein Colliery, an opencast mining operation in Mpumalanga, South Africa, for supply to an Eskom-designated power station. Deliveries are scheduled to begin on 1 November 2025, or on a mutually agreed later date.
The contract spans approximately five years and two months, covering the supply of around 6.5 million tonnes of coal on an “as received” basis, subject to calorific value and agreed delivery parameters.
The Salungano Group Board considers the CSA to be price-sensitive, providing revenue certainty and supporting operational planning for the Vanggatfontein Colliery. The agreement is also viewed as significant to the group’s going-concern assessment, as highlighted in its audited financial statements for the year ended 31 March 2024.
The Vanggatfontein Colliery, operated by Wescoal, extracts coal from the No. 5, No. 4, and No. 2 seams, producing an average of 340,000 tonnes of run-of-mine coal per month.
Further details on the CSA will be disclosed in the Salungano Group’s financial reports in due course.
