Vanggatfontein Colliery operating amid business rescue process
JSE-listed Salungano Group has reported progress in the business rescue process of its indirect subsidiary Keaton Mining, following its February 2024 filing for business rescue.
The company has confirmed this week that agreements with suppliers and a management agreement in terms of a compromise proposal had been finalised.
During a liquidation hearing on October 11 last year, the provisional liquidation order was formally discharged. The application for leave to appeal an earlier dismissal of a business rescue application in respect of Keaton Mining was subsequently withdrawn.
Production continues in the meantime at Keaton Mining’s Vanggatfontein Colliery, in Mpumalanga.
The Vanggatfontein Colliery, which operated below capacity in the six months to September 30, is not Salungano’s main revenue-generating asset. Its flagship operation is the Moabsvelden Colliery, operated under the Neosho subsidiary.
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