Name and Location
Kangala colliery, 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.

Duration
Production at Kangala started in February 2014.

Latest Developments
Universal Coal has reported maiden operating cash of A$3.9-million from is Kangala colliery, in South Africa, after it was commissioned in February this year.

About 375 333 t of product was sold during the quarter ended June.

The company has increased its plant capacity to 4.25-million tonnes a year, accommodating a request from major power-utility customer Eskom for higher specification coal from the mine.

To accommodate the request, Universal says a higher proportion of coal will be processed through the dense-media separation section of the coal handling and preparation plant, which will reduce overall sales by about 23%, but will yield higher prices.

The company’s original two-million-tonne-a-year agreement with Eskom has been amended to ensure that net revenues received during this time will match the original agreement.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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