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Continental opens R351m underground coal mine

15th November 2013

By: Leandi Kolver

Creamer Media Deputy Editor

  

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ASX- and Aim-listed Continental Coal officially opened the R351-million Penumbra underground coal mine, in Ermelo, Mpumalanga, last week.

The soon-to-be JSE-listed group, which delivered a guided tour of the operations to media, plans an output of 70 000 t/m of coal, at an average yield of 64.3%, over the next 11 years.

Continental had ramped up to 50 000 t/m coal production, mining the C lower seam at an average depth of 85 m and average seam thickness of 1.8 m, COO Johan Heystek said.

The greenfield mine, funded with R101-million equity and R250-million debt from Absa Capital, would supply export and domestic markets, with State-owned power utility Eskom expected to be a major growth area, Continental CEO Don Turvey said at the site.

The new operation has already contributed 143 299 t of the 2.2-million tons of coal produced from all Continental’s operations during the 2013 financial year.

Nearing Depletion

Penumbra is ramping up production as the Ferreira mine’s export coal is nearing depletion, ensuring continuity in the company’s supply of export coal for another ten years.

This comes as Continental narrows focus to ensuring the De Wittekrans development, which received its mining right in September, delivers first coal in 2015, with a run-of-mine coal target of 3.5-million tons a year.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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