KEATON Energy jumped 15% to 61c on Tuesday,
after saying a legal R42.5m dispute with contract miner Megacube has
been settled in its favour.
Megacube was formerly part of JSE-listed Sentula, which sold the loss making division for R118.7m four years ago. Keaton gave Megacube notice it was terminating its contract shortly after it was sold by Sentula, leading to the dispute which has now been settled.
On Friday, Keaton placed its Vaalkrantz colliery on care and maintenance, issuing all employees with retrenchment notices.
Keaton said the colliery’s biggest customer had declared force majeure, worsening the colliery’s problems caused by low coal prices and unavailability of water due to continued drought in the region.
Not only did the arbitrator dismiss
Megacube’s claim that it was owed R42.5m with costs, but ordered the
contractor to compensate Keaton for 657,583.8 tonnes of coal it had
failed to mine and for its failure to deliver 300,000 tonnes of coal per
month as agreed.
Megacube was formerly part of JSE-listed Sentula, which sold the loss making division for R118.7m four years ago. Keaton gave Megacube notice it was terminating its contract shortly after it was sold by Sentula, leading to the dispute which has now been settled.
On Friday, Keaton placed its Vaalkrantz colliery on care and maintenance, issuing all employees with retrenchment notices.
Keaton said the colliery’s biggest customer had declared force majeure, worsening the colliery’s problems caused by low coal prices and unavailability of water due to continued drought in the region.
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