From the desk of the Co-CEOs

The 2023 calendar year was a big year for Palesa Coal
with the commencement of the Rooipoort extension
project. The extension will add 32, 2 Mt of coal reserve to
Palesa Coal and extend the life of mine “LoM”. During
the 3rd quarter production was impacted by unfavorable
weather conditions “rainy season” and sales were affected
by client’s rejection of coal due to the percentage of fines
in product, the fines challenges are being addressed both
internally as well as with the client Eskom.

In August 2023, the FX plant broke the record of 260 788
plant feed tons which was exceptionally well and in
October 2023 they broke another record of 265 318 plant
feed tons. In this financial year both Plants, the DMS
and FX managed to achieve six records of plant feed.
Well done to the teams! The January performance showed
a good start for the calendar year, let’s keep it up, so that
we can achieve our objectives for the current financial
year which will end at the end of March 2024.

“Zero harm remains
HCI Coal’s key safety
objective at Palesa.”

On the Safety front, to date, Palesa Coal recorded 745
Lost Time Injuries (LTI) free days, and 2492 Fatal
Incident (FI) free days. This is an exceptional
achievement, and everyone can be proud of this. Palesa
Coal has adopted the health and safety (H&S) rules to
effectively ensure that a proactive H&S culture is fully
embedded in its operation. This will also ensure that a
vision of “zero harm” is achieved. Palesa Coal launched
the critical season campaign in October 2023 under the
theme “SEKWANELE”. We wish to extend our
gratitude for such resilience during this difficult quarter.
– Aadil & Pieter

From the desk of the Co-CEOs

From the desk of the Co-CEOs

The first quarter of FY23/24 ended at the mark of 7% for full bonus quarter qualifiers and on track for annual despite 15% underperformance in May due to rain. We need to highlight that not all areas performed as expected, we made sales target by selling product inventory, meaning both plants did below on producing the product, these challenges are being addressed with respective teams. In April 2023, first month of financial year [FY23/24], MS achieved a record of 131 088 tons plant feed, and the FX Plant achieved a record of 277 989 tons plant feed setting new records for both plants. In the months of May and June both plants were slightly above budget, and in July 2023 both plants achieved new records with the DMS feed on 148 316 tons and the FX feed on 274 728 tons.

“A safe work environment is not because of the absence of accidents, but due to the presence of controls”

On the Safety front, as at the end of the first quarter, Palesa Coal recorded 132 Medical Treatment Incident free days, 556 Lost Time Injuries free days, and 2303 Fatal Incident free days. There are red flags as we had property damage incidents, some TMM related indicating we are at risk for potential serious accident. Palesa will also initiate a drive to turn this around with your co- operation. General standards in workplace are poor, this reflects attitude and behavior that must be changed. We wish to extend our gratitude for such team effort. – Aadil & Pieter