JOHANNESBURG (miningweekly.com) – South Africa-focused junior miner Continental Coal on Monday reported that it would start coal production from its Vlakvarkfontein mine during the first quarter of this year.

The company said in a statement that it had appointed contract miner Trollope Mining Services (TMS) on an initial three-year contract. TMS will be responsible for management of the site and all mining and crushing activities, including the delivery of 100 000 t/m of coal.

Continental noted that given the existing infrastructure at Vlakvarkfontein and the predevelopment works on the access road completed, TMS is expected to start topsoil stripping at the mine within the next two weeks, with the building of a workshop and offices as part of the site establishment.

Conventional opencast mining activities would start in the later stages of the first quarter.

The mine is expected to produce one-million tons a year of domestic quality thermal coal and 350 000 t/y of export quality thermal coal.

Takeoff sales agreements for the domestic and export coal product were currently being finalised with South African power utility Eskom and a number of international coal trading houses respectively, said Continental.

Continental MD Bruce Buthelezi said that the appointment of TMS as contract miner was the beginning of, what the board believes, would be a long-term and fruitful relationship for both parties.

The awarding of the mining contract follows a rigid selection and review process that was undertaken by external independent consultants on behalf of Continental. This review process included an assessment of the mining contractors‚ credentials, capabilities and equipment and labour availability as well as visits to a number of their existing contracting operations.

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