Thungela Resources’ TGAJ.J Ensham thermal coal mine anchors the company’s growth prospects away from South Africa, CEO Moses Madondo said on Monday, after the Australian operation helped the company double its half-year profit.

Thungela’s headline earnings per share rose to 4.80 rand ($0.2972) in the six months to June 30, up from 1.92 rand during the same period last year.

The miner’s income was driven by higher output, firmer thermal coal prices and increased export sales as the Middle East conflict disrupted energy markets.

In South Africa and Australia, where Thungela operates mines, benchmark coal prices increased by 15% and 25%, respectively, boosting revenue to 15.2 billion rand for the period from 14.8 billion rand previously.

Thungela acquired the Australian mine in 2023 to diversify away from South Africa, where logistics bottlenecks have forced bulk mineral exporters to curtail output.

Production at Ensham rose 38% to 2.2 million metric tons in the first half, on the back of improved management of mining conditions following geological challenges which affected output in the first half of 2025.

Thungela was now better placed to deal with geological challenges at Ensham and looking for ways to expand output beyond current levels around 4 million tons annually, Madondo told Reuters.

“It offers a lot of opportunity for growth for us. We are looking at a number of the areas, looking for opportunities for growth there,” Madondo said, adding that Thungela was currently conducting studies on potential expansion.

Thungela’s export sales increased 12% to 9.5 million metric tons, underpinned by improved freight rail logistics in South Africa and strong production at Ensham.

The company expects to produce between 13 million and 13.6 million tons for the export market in 2026.

Thungela said it would pay an interim dividend of 5.50 rand per share, up from 2 rand per share previously.

(Reporting by Nelson Banya and Olivia Kumwenda-Mtambo; Editing by Kirsten Donovan and Jacqueline Wong)