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Universal starts coal production at Kangala

05 Mar 2014

South Africa-focused coal developer Universal Coal expected to deliver its first coal in March after starting production at the company’s first coal operation, Kangala mine, in Witbank, Mpumalanga.

The group, which would now ramp up to 2.1-million saleable tonnes a year, allocated two-million tonnes of coal a year to South African power utility Eskom and 100 000 t/y for export markets through an offtake agreement with coal producer Exxaro Resources.

“This marks a significant milestone as we progress towards becoming a midtier coal producer,” said Universal Coal CEO Tony Weber.

Weber added that Kangala would provide “steady and strong” cash flow for further growth as the company progressed its pipeline of coal assets, including the Roodekop/New Clydesdale colliery.

Source: www.miningweekly.com