Universal on track for Feb production
PERTH (miningweekly.com) – Junior Universal Coal is on track to deliver maiden production at its Kangala coal mine, in South Africa, by February next year, it reported on Tuesday.
The first overburden blast at Kangala was recently completed ahead of first coaling activities, which have been earmarked for later this month.
The first run-of-mine coal, which was expected in October, would be used for the base of the stockpiles, while the remaining box-cut coal would be used to commission the crushing and screening plant in December.
The Kangala mine will be Universal’s first coal mine, and would produce some 2.1-million tonnes a year of saleable thermal coal, with two-million tonnes a year of the product allocated to local electricity producer Eskom.
A further 100 000 t/y of thermal product has been allocated to coal miner Exxaro, for export.
At a capital cost of A$46.8-million, the project would deliver average yearly earnings before interest, tax, depreciation and amortisation of A$15-million.
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