The company has decided to place Penumbra on care and maintenance. This was due to the current depressed export coal prices and high production costs as a result of inefficiencies in using continuous miners with the geology currently being encountered.

An alternative mine plan of converting the mine to three drill and blast sections has been prepared and is financially viable based on current prices for both export and domestic sales where demand remains high and margins strong.

Meanwhile the De Wittekrans coal project is in the process of being tendered for sale to reduce current debt levels.