Production milestone at Kangala coal mine

Universal Coal has announced that production has commenced at its Kangala mine, located 65 km from Johannesburg, South Africa.

Coal export markets

First delivery of coal will commence this month, in line with first commercial production having commenced in February, as per the 2 million tpa offtake agreement with South’s Africa’s power utility ESKOM. Remaining coal production will target the export markets, via a 100 000 tpa offtake agreement with Exxaro Resources.

Kangala is Universal Coal’s first coal mine. The operation is now ramping up towards its full capacity of 2.4 million tpa, of which 2.1 million tpa is saleable coal.

Comments

Commenting on the production, Universal Coal’s CEO, Tony Weber said: “This marks a significant milestone as we progress towards become a mid-tier coal producer.

“Kangala will provide steady and strong cashflow for the decade to come, laying the foundation for further growth in helping to fund the progress of our pipeline of quality coal assets including our next operation, Roodekop/New Clydesdale Colliery.

Coal producer

“We thank our dedicated management team, employees and contractors who have worked tirelessly to build this project into an operating mine on schedule and within budget, and so transition Universal Coal into a producer.”

Universal Coal is in the process of finalising the legal agreements and regulatory processes for the New Clydesdale Colliery acquisition.

Adapted from press release by Katie Woodward

Read the article online at: https://www.worldcoal.com/mining/04032014/production_milestone_at_kangala_coal_mine_583/