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New UserUniversal Coal to push ahead with New Clydesdale colliery
19 Jul 2016
South Africa-focused Universal Coal plans to restart the New Clydesdale colliery (NCC), in Mpumalanga, as an export-focused coal mine, while negotiations continue to supply State-owned power utility Eskom.
CEO Tony Weber on Monday also expressed the ASX-listed company’s disappointment that triple-listed Coal of Africa Limited’s A$126.4-million offer to acquire Universal Coal had lapsed, but said that the firm had a “clear path” forward to commission the colliery in the next few months.
He said NCC would be developed to supply the export thermal coal markets and that the balance of product would be sold in the domestic space. “This could entail coal sales to Eskom on a short-term supply basis and to other local acquirers or traders of domestic thermal coal,” Weber stated.
Universal also continues to engage with Eskom on potential offtake agreements for thermal coal product from NCC.
Weber further outlined that with Universal’s Kangala colliery delivering record production in the fourth quarter, ended June 30, increasing run of mine (RoM) by 35% to 1.04-million tonnes, and 32% up for the full year, the company was well positioned to generate strong cash flow and support further growth for the rest of the year.
Total coal sales increased by 39% quarter-on-quarter to 609 120 t, while full-year sales exceeded two-million tones, with the mine producing over three-million tonnes in the financial year.
Weber remarked that having concluded the pit reconfiguration, Kangala was “firing on all cylinders”, and delivering record production in the process.
“We anticipate increasing production further in the year ahead, thereby delivering strong sales and cash flow to pay down debt facilities and to fund growth prospects.”
Source: Mining Weekly