South Africa’s Sasol on Thursday reported lower output at its coal mining division in the October-December quarter citing safety-related incidents, tough geological conditions and delays in sourcing spares for maintenance.
Output in the quarter was cut by 5% or 394,000 metric tons as a result, said Sasol, the world’s biggest producer of fuels and chemicals from coal and gas. This would “negatively impact our mining unit cost per ton for the full year,” Sasol said in a trading update.
Sasol maintained its production forecast for the full year to June 2024 for its mining, gas and chemicals segments. However, it lowered its utilisation rate forecast for its Qatar gas-to-liquid joint venture to 65-75% from previous guidance of 80-90% after a reactor coil leak brought forward a planned shutdown to the second quarter.
Repair work will extend into the third quarter. Sasol is scheduled to release its half-year results on Feb. 26.
