Kariboo Colliery Back in Production as German Group Ramps Up Northern KZN Mine

A previously closed coal operation in northern KwaZulu-Natal has moved back into production, with German commodities group HMS Bergbau AG confirming that output from its South African mining operation is now being progressively ramped up.

The development centres on Hoshoza Resources Vryheid (Pty) Ltd, the holder of the mining right associated with Kariboo Colliery in the Utrecht coalfield.

In its latest corporate results announcement, issued on Wednesday, 19 August 2026, HMS Bergbau confirmed that the commencement of production at its coal mines in South Africa and Botswana represented a key milestone during the first half of the year. The company expects both operations to reach full production during 2026.

“We are particularly pleased that our coal mines have started production,” said HMS Bergbau CEO Dennis Schwindt.

The German group said production would be gradually increased during the remainder of the year, after the South African operation entered production during the first half of 2026.

While HMS refers to the South African operation principally through the company name Hoshoza Resources Vryheid, official South African mining records provide a clearer picture of where the operation sits.

The Department of Mineral Resources and Energy’s directory of South African coal mines identifies Kariboo Colliery, controlled by Hoshoza Resources Vryheid, within the Utrecht coalfield. The operation is associated with the farm Zoetmelksrivier 86 HT in the Utrecht district.

Newcastle CMT Industry Under Severe Pressure as Orders Plunge 50%

South African High Court records also identify Hoshoza as the holder of the mining right known as the Kariboo mining right, referenced by the Department as KZN 10081 (233) MR.

Nevertheless, the restart follows a significant change in ownership earlier this year.

On 19 February 2026, HMS Bergbau announced that its South African subsidiary, HMS Bergbau Africa (Pty) Ltd, had acquired a 75% shareholding in Hoshoza Resources Vryheid.

According to the company’s official acquisition announcement, the transaction had received approval from South Africa’s Department of Mineral Resources and Energy.

At the time, HMS said Hoshoza held a metallurgical coal mining licence covering more than 18,600 hectares in KwaZulu-Natal, including a temporarily closed mine that the group intended to reactivate.

The company initially targeted approximately 200,000 tonnes of processed final product per year through opencast mining once production resumed.

However, HMS’s plans extend beyond that initial production level.

According to its February announcement, the group envisages adding approximately 450,000 tonnes of annual production through underground operations once the required preparatory work has been completed.

If achieved, this would take total planned production to approximately 650,000 tonnes per year.

HMS also said coal from the operation would be processed through an on-site processing plant, while further coal resources are believed to exist within the broader mining-right area. Any expansion beyond the stated production targets would, however, depend on the economic viability of those additional resources being confirmed.

Importantly, the latest financial results indicate that Hoshoza is already beginning to have an impact on the German group’s accounts.

HMS reported preliminary unaudited revenue of approximately €1.1 billion for the first six months of 2026, compared with €643 million during the corresponding period. It recorded EBITDA, including once-off items, of €22.5 million.

Of that, the company attributed a positive once-off earnings effect of €8.4 million to the consolidation of Hoshoza Resources Vryheid into the group.

HMS cautioned, however, that the exact extent to which ongoing activities at Hoshoza will affect its financial results cannot yet be determined.

The company’s investment in the northern KZN operation forms part of a broader strategy to move beyond commodity trading and secure direct interests in mining operations.

When HMS acquired its stake in Hoshoza, it also secured the purchase and marketing rights for the mine’s coal production.

Its stated intention was to derive earnings not only from trading commodities internationally, but increasingly from participating directly in their production.

By May 2026, HMS had already confirmed that its Hoshoza project in South Africa and its Maatla project in Botswana had begun production during the first half of the year.

The latest August update now confirms that the two operations are being moved through their production ramp-up, with full production targeted before the end of 2026.

El Niño Puts Northern KZN’s Water Systems Under the Spotlight

For northern KwaZulu-Natal, the development marks the return to production of a coal asset within the historic Utrecht coalfield at a time when an international commodities group is planning significantly greater output from the operation than its initial start-up volumes.

Whether HMS ultimately reaches its longer-term target of approximately 650,000 tonnes per year will depend on the implementation of its planned underground expansion and associated works.

For now, however, the key development is clear: Kariboo’s mining right holder is no longer sitting over a dormant operation. Production has commenced, and its new majority shareholder says output is now being increased.

The official HMS Bergbau acquisition announcement and production plans can be accessed through the company’s corporate release. HMS Bergbau’s official Hoshoza acquisition announcement

HMS’s latest half-year results and confirmation of the production ramp-up were distributed through EQS on behalf of the company. HMS Bergbau’s 19 August 2026 corporate announcement

Jointly, the South African mining record identifying Kariboo Colliery, Hoshoza Resources Vryheid and the Utrecht coalfield is contained in the Department of Mineral Resources and Energy’s coal-mine directory. Department of Mineral Resources and Energy coal-mine directory

But, with all of this in mind, what are your thoughts? Let us know below.

Whilst here, do not forget to read: Ballengeich Colliery Discharges 1 Million Litres of Acid Mine Water Daily