This good result comes from a strong performance at Black Wattle, our South African coal mining subsidiary where, as a result of the opening of a third opencast pit, our monthly run of mine production has increased from an average of 110,000 metric tonnes achieved in the first half of 2011 to 165,000 metric tonnes in the second half of 2012

The physical demand for the lower quality coal we are currently mining has remained strong in both the domestic and export markets and the South African coal market has continued to benefit from the improved performance of the South African railway network, Transnet. This improved performance, along with the weakening of the South African Rand against the US Dollar, has helped us offset the impact of the weaker international coal prices. Demand is currently very strong in both the domestic and export markets for high quality coal. We expect to shortly address this demand by accessing higher quality reserves at Black Wattle.