JOHANNESBURG (miningweekly.com) – Building on the record deliveries it achieved across its operations in the first half of 2018 financial year, ASX-listed Universal Coal is on track to deliver higher-than-projected sales tonnes for the full year.

The company, which operates two coal mines in South Africa's Mpumalanga province, has set a target of producing 4.6-million tonnes of domestic and export tonnes in the 2018 financial year.

This comes as the Kangala colliery achieved budgeted run-of-mine production of one-million tonnes during the second quarter, although this was slightly less than the previous quarter's 1.02-million tonnes.

Tonnages were anticipated to be lower during December owing to increased rain delays and a shorter working month with numerous public holidays during the Christmas period.

However, the colliery was still able to produce sufficient product to fulfil all its delivery requirements under the various offtake agreements.

Domestic sales decreased by 36% from 771 000 t in the first quarter to 567 000 t in the second quarter, with Eskom sales affected by the short December sales month and reduced trucking days owing to an exceptionally wet December restricting deliveries.

Despite this, the colliery still expected the next quarter of sales to be in line with projections, having built up product inventories.

Export sales totalled 36 000 t, recording a 50% increase on the previous quarter.

At the New Clydesdale Colliery (NCC), strong mining performance for the December quarter resulted in a 16% increase in production to 951 000 t from the first quarter result of 796 000 t.

NCC is on track to deliver its projected production target by June, given the increased production during the current quarter.

NCC also recorded 151 000 t of export quality product sold in the quarter, a reduction of 8% on the previous quarter. The export sales were affected by the availability of trains over the December period owing to a temporary closure of the Richards Bay Coal Terminal, although product was added to the sales inventory on hand.

Further, 333 000 t of Eskom quality sales were recorded in the quarter, an 11% increase from the previous quarter.

The company has reaffirmed its updated 2018 group earnings before interest, taxes, depreciation and amortisation guidance, issued last week, at A$55-million, compared with A$45-million previously.