Universal reports strong quarter from Kangala

15th October 2014 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The Kangala colliery, in South Africa, exceeded production expectations during the September quarter, owner Universal Coal reported on Wednesday.

The ASX-listed miner said that during the three months under review, the Kangala mine delivered 580 007 t of run-of-mine (RoM) coal, up from the planned 572 394 t.

Some 505 662 t of RoM coal was processed for sale, with a further 22 885 t used for lining the base of the new stockpiles, while the balance of the product was stockpiled.

During the quarter, Universal announced the first coal exports from the Kangala colliery. The coal would be delivered through road transport to major Exxaro Coal’s nearby Leeuwpan mine, where it would be loaded on trains destined for the Richards Bay Coal Terminal (RBCT), after which the coal would be marketed and exported by Exxaro.

Universal has been granted an export allocation of 51 000 t/y through the RBCT and has applied to increase this capacity further, in anticipation of increased export sales, once the acquisition and commissioning of the New Clydesdale colliery was finalised.

Universal was acquiring the New Clydesdale colliery from Exxaro, which had been looking to divest of the project since April last year. The mine was placed on care and maintenance in December last year.