Kangala colliery, South Africa
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 strengthened its cash position and shifted its project finance debt facilities to more favourable terms following a drawdown of its R285-million Kangala finance facility with Investec Bank.
The drawdown, which replaces the previous project finance debt facilities with FirstRand Bank, has released restricted cash and helped expedite the development of Universal’s second operation, the New Clydesdale colliery (NCC).
“With . . . Kangala, generating strong cash flow, we are in an excellent cash position to continue growing the company and increasing shareholder value,” says Universal CEO Tony Webber.
The tranche-A facility will be subject to the three-month Johannesburg Interbank Agreed Rate plus a margin of 4% a year, until the completion of NCC, after which the margin will be reduced to 3.5% a year.
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.
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