Jindal Steel and Power (JSPL) reported a positive 2QFY17 at its mining operations in southern Africa and Australia, according to the company’s latest results announcement, on the back of higher coal prices.
“JSPL’s overseas mine in Australia, Mozambique and South Africa are set to witness a major turnaround during Q3 and Q4,” the company said. “All mines are already in operation and their volumes are being ramped up. If the present prices of coking and thermal coal sustain at around the present level, the mining assets will contribute a significant value to the company’s EBITDA performance.”
In South Africa, anthracite production was up, with a 50% hike in capacity, the company said, and the mines reporting higher earnings on the back of higher coal prices.
Meanwhile in Mozambique, coal production from Jindal’s mines was resumed on the back of the higher prices on global metallurgical coal markets. The company is targeting production of 0.25 million tpm by the end of the current financial year.
“The mines in Mozambique are expected to achieve a major turnaround during the coming quarters,” the company said.
2QFY17 also marked a turnaround for JSPL’s Australian mining operations, which generated positive earnings. The Wongawilli mine in New South Wales produced 0.04 million t in the quarter and is now ramping up production to 0.1 million tpm.
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