Universal Coal delivers first coal from Kangala mine

South African miner, Universal Coal, has delivered the first thermal coal from its Kangala mine to utility company Eskom.

Run-of-mine (ROM) coal mined from Kangala since February has been processed on site and stockpiled prior to transport. Under the terms of the coal sales agreement, Universal Coal will supply Eskom with sales from Kangala for the next 8 years.

Coal export market

Universal Coal said the remaining production would be sold to the export market, via a 100 000 tpa offtake agreement with South African producer Exxaro Resources.

First export sales are on track to begin in July 2014. The company has already secured export allocation through Richards Bay Coal Terminal.

Comments

Universal Coal CEO, Tony Weber, commented: “We are delighted to have now delivered first coal sales to schedule, and look forward to generating steady and strong cashflow from Kangala for the decades to come.

“We are currently installing the DMS washing circuit on that site that will enable us to commence processing export quality coal.”

New Clydesdale Colliery

The company added that cashflow from Kangala, which is now ramping up to its nameplate capacity, will assist with funding the development of the New Clydesdale Colliery/Roodekop project.

Edited from various sources by Katie Woodward

Read the article online at: https://www.worldcoal.com/coal/07042014/first_coal_from_kangala_mine_695/