Universal completes NCC buy
PERTH (miningweekly.com) – South Africa-focused Universal Coal has completed the acquisition of the New Clydesdale colliery (NCC), bringing to fruition the company’s plans to be a multimine coal producer before the end of this year.
Universal Coal in February 2014 bought NCC from South African coal major Exxaro Resources, which had placed the operation on care and maintenance at the end of 2013.
The ASX-listed company was, in July, given clearance to start recommissioning work with the transfer of the mining right.
The final installment of the purchase price had now also been paid to Exxaro, giving Universal full ownership of the NCC project.
“NCC provides the company with its second, long-term, significant coal-producing asset within the span of two years. We look forward to bringing the operation on stream with first production planned for later in 2015,” said CEO Tony Weber.
“Once steady-state operations are achieved, we anticipate that the additional tonnage from NCC will contribute significantly in improving the existing level of cash generation and earnings for the group.”
Universal would work to recommission NCC’s existing processing facilities for a Phase 1 opencut development, which would process up to two-million tonnes a year run-of-mine coal for supply into the local market.
A long-term coal sales agreement with power utility Eskom was also nearing settlement, with a consensus already reached on key terms. NCC was expected to supply some 1.2-million tonnes a year of high-grade domestic thermal coal to Eskom.
Universal last week became the subject of an A$80-million cash takeover offer from shareholder and South African coal miner IchorCoal.
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