Domestic sales increased 24% from 348,476 tonnes in the previous quarter to 432,251t in the March 2015 quarter, marking a new quarterly sales record, Universal CEO Tony Webber said.

“Domestic sales in the last quarter were affected by the fact that distribution was primarily dependent on Eskom,” he said.

“This meant that if there was a delay in distribution due to factors beyond our control, the entire distribution cycle was affected.”

Universal now manages contractor owned truck fleets to transport coal to Eskom power stations, and has greater control and certainty over distribution as a result.

Logistical improvements have also been a key success factor in export sales, which have grown from 17,728t to 29,761t quarter-on-quarter.

This is a direct result of Universal fielding an additional two trains to transport coal to export hubs, increasing its shipments to a total of five trains for the quarter, according to Webber.

“The importance of distribution cannot be underestimated,” he said.

“For a company like ours, the first challenge is to get the coal out of the ground, but the second is to deliver it to our customers in the correct quantities and on time.”

From an operational point of view, Kangala Colliery, Universal’s maiden operation, has reached steady state production with run-of-mine of 572,376t during the quarter.

Kangala consistently reaches or exceeds its tonnage targets, which is a significant success for a relatively new producer, Webber said.