PERTH (miningweekly.com) – South Africa-focused coal miner Universal Coal has reported a 13% decline in run-of-mine (RoM) coal production to 686 900 t for the quarter ended September, compared with the 790 687 t delivered in the previous quarter.

The lower production was owing to a reconfiguration of the Kangala colliery pit and a greater focus on pre-stripping aimed at exposing more mining blocks to allow for production flexibility in anticipation of potential longer-term increases in demand and further improving pit stability following a geotechnical audit.

Coal sales for the quarter rose 3%, from the 509 000 t sold in the June quarter, to 524 000 t, as export sales increased by 363% to 26 000 t, more than making up for a 1% drop in domestic coal sales.

CEO Tony Weber said on Friday that having completed the acquisition of the New Clydesdale colliery, Universal was excited to start commissioning activities ahead of first production, which remained on track for year-end.

“Once New Clydesdale ramps up to Phase 1 steady-state production of two-million tonnes a year RoM, Universal will have become a multimine coal company.”

Weber noted that, besides New Clydesdale, the company also had its third operation earmarked at Brakfontein, awaiting only the water-use licence prior to the start of development.

“With Phase 2 underground development at New Clydesdale, alongside Arnot South and our huge coking coal deposits, we have an ideal project pipeline to grow this company into a midtier coal producer in the medium term.”

Earlier this month, Universal acquired the Arnot South thermal coal project from South Africa’s largest listed coal miner Exxaro for A$9.45-million.

The project covers some 15 212 ha. Historical drill data suggests the project has a Joint Ore Reserves Committee-compliant resource of some 97.7-million tonnes.

During the quarter under review, Universal also became a takeover target of shareholder IchorCoal, which was offering to buy the remaining shares in the company for A$0.16c a each.

Universal has maintained that the offer was inadequate and did not represent the inherent value of the company, pointing out on Tuesday that the independent expert had valued Universal’s shares at between A$0.26 and A$0.34 each.