Continental Coal exceeds monthly production target

Continental Coal Ltd has announced that it has exceeded its monthly production target of 100,000 t of thermal coal at its Vlakvarkfontein coal mine in South Africa, just two months after production commenced at the company’s first mine.

The Australian-listed company said it produced 101,899 t of thermal coal at the mine, based 100 km east of Johannesburg, during July.

Continental Coal CEO, Don Turvey, said: “We are confident that sustained monthly coal production levels of 100,000 t can be achieved in the December 2010 quarter and beyond.”

Off-take agreements

The company also announced that, since first coal production commenced in May 2010, it has successfully concluded three separate off-take contracts for the sale of its domestic quality thermal coal from the mine.

These contracts, which are with domestic end users and nearby mining operations, are generally short-term, extending for periods of no more than 6 months.

However, the company expects longer-term contracts to be signed in the coming months, as mining activities at Vlakvarkfontein are now taking place on both the 4 seam and 2 seam.

Turvey said: “With these preliminary off-take contracts already established, the company is well positioned to ensure 100% of our forecast production at Vlakvarkfontein is sold into the domestic market at attractive coal prices which provide free cashflow to support our other mine development activities.”

Read the article online at: https://www.worldcoal.com/mining/21092010/continental_coal_exceeds_monthly_production_target/