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Kangala thermal coal project, South Africa

1st November 2013

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Kangala thermal coal project, Mpumalanga, South Africa.

Client
Universal Coal.

Project Description
Kangala has proven reserves of 20.8-million tonnes of thermal coal. It comprises three properties – Wolvenfontein, Middelbult and Modderfontein.

Saleable coal tonnages averaging 2.1-million tonnes a year will be achieved from a 2.4-million-tonne-a-year run-of-mine (RoM) production rate over the life of the mine, which is forecast at 8.5 years.

Value
A$46.8-million . All funding for the project has been secured.

Duration
Kangala will begin production in February 2014.

Latest Developments
Universal has mined its first RoM coal at the Kangala mine.

The boxcut, which started in the first week of July, remains on track, with the uppermost coal seam having been exposed.

The first RoM coal schedule from the pit will be used for the base of the product stockpiles to prevent contamination at a later stage, while the remaining boxcut coal will be used during the commissioning of the crushing and screening plant in December.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Universal reports that the A$46.8-million project remains on budget and is set to deliver its first production by February.

Contact Details for Project Information
Universal Coal, tel +27 12 460 0805, fax +27 12 460 2417 or email info@universalcoal.co.za.

Edited by Creamer Media Reporter

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