Universal buys interest in project adjacent to Kangala colliery
PERTH (miningweekly.com) – South Africa focused coal miner Universal Coal has unveiled plans to expand its Kangala colliery with the acquisition of a 29% interest in the adjacent Eloff project.
The ASX-listed Universal on Wednesday reported that the company, through its 49%-held subsidiary Universal Coal Development IV, had taken a 29% stake in Eloff Mining Company for A$4.35-million.
The Eloff project is contiguous to the existing Kangala Colliery, and hosts a mineral resource of 242-million tonnes. Universal noted that the Eloff deposit was a direct extension of Kangala’s current pit and that it would require limited future development capital, resulting in significant cost savings in monetising the Eloff project.
Universal plans to fund its share of the Eloff project’s funding requirements from the operating cash flow generated from existing projects.
“We are delighted to have acquired a stake in Eloff, an asset which has the potential to increase capacity and sustainability at our first operation, Kangala, which continues to exceed original guidance,” said Universal CEO Tony Weber.
“Record sales were achieved in June 2017 and Kangala has delivered strong cash flows throughout the 2017 financial year through increased sales of 2.4-million tonnes a year.”
Weber noted that with the New Clydesdale Colliery now starting to achieve nameplate sales tonnage, Universal was looking forward to similar improvements in efficiencies being achieved over the next year, providing the company with its second, long-term significant coal producing asset within the span of two years.
Opencut operations at New Clydesdale started in January this year as part of the second phase of the planned 3.3-million-tonne-a-year run-of-mine development.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
