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Universal exports first coal from Kangala

World Coal,

Universal Coal has confirmed the first export of thermal coal from its 70.5% owned Kangala Colliery in South Africa.

Kangala produces at the rate of 2.4 million tpa run of mine thermal coal in the Witbank coalfield, with installed processing plant capacity of 4.25 million tpa. Universal is targeting export sales of 100,000 tpa from Kangala.

Under an agreement for the supply and purchase of coal with Exxaro, the Kangala Colliery will deliver coal via road transport to Exxaro’s nearby Leeuwpan Mine, making use of Leeuwpan's infrastructure and access rights to the Delmas siding.

Trains destined for the Richards Bay Coal Terminal (RBCT) will each be loaded with 6000 t of coal for delivery to RBCT following which the coal will be marketed and exported by Exxaro.

Universal Coal has been granted export allocation for 51,000 tpa through the RBCT Quattro Entitlement scheme and has applied to the South African Department of Mineral Resources to increase this further in anticipation of increased export sales, following finalisation of the acquisition and re-commissioning of the New Clydesdale Colliery.

Adapted from press release by Katie Woodward

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