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Kangala thermal coal project, South Africa

7th February 2014

By: Creamer Media Reporter

  

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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 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 Coal has started hot commissioning at its Kangala operations, with first production on track for this month.

Cold commissioning of the processing plant was successfully completed in December, enabling the company to proceed with its ramp-up plans.

Universal Coal has noted that the boxcut operation continues to progress well, with coal being mined and sent to the run-of-mine stockpiles over the past three months.

The majority of this stockpile will now be used in the hot commissioning of the crushing and screening plant.

The Kangala project is scheduled to produce about 200 000 t/m by March this year.

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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