JOHANNESBURG (miningweekly.com) – Following the development of a resource model for the integrated New Clydesdale Colliery (NCC) and Roodekop projects and in preparation for a bankable feasibility study due for completion later this month, Sydney-listed Universal Coal has announced an upgraded resource and reserve estimate for the NCC project, lifting coal reserves 289% to 40.75-million tons and increasing coal resources 20% to 165.4-million tons.
Located in the Witbank coalfields, in Mpumalanga, Universal believed that NCC was poised to become the company's next operation, with first coal expected in the second half of the year.
The first phase of development would produce two-million tons a year of run-of-mine over an initial ten-year period. The reserve remaining after the initial ten years was sufficient to double the life of NCC, it held.
Updating the market on the progress of the project, Universal outlined on Monday that
Ministerial approvals in terms of Section 11 were “imminent” and likely to be finalised in the current quarter.
The company was also well advanced with negotiating long-term coal sales agreements with both domestic power and metallurgical offtakers.
The opencast tender process for mining at Roodekop had been completed and a preferred contractor nominated, while contractual agreements were being drafted.
The tender process for the operation of the processing plant had meanwhile started with the tender documents being released to preselected parties in April.
Debt funding proposals with local banking institutions for the financing of the balance of the NCC mine development programme were also well advanced, the results of which would be announced to the market in due course.
Once in full production, the company would proceed with the second phase of the feasibility into the expansion of NCC, with the development of its underground resource base for the export markets.
“We are entering an exciting growth phase, with NCC set to double the company's production once at steady-state. The trebling of the reserves confirms NCC as a long- life, multiproduct operation and further enhances the financial robustness of the project, commented CEO Tony Weber.