Kangala thermal coal project, South Africa
Name and Location
Kangala thermal coal project, 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. All funding for the project has been secured.
Duration
Production at Kangala started in February 2014.
Latest Developments
Universal Coal expects to deliver its first coal from Kanagala this month, after starting production in February.
The group, which will ramp up to 2.1-million saleable tonnes a year, has allocated two-million tonnes of coal a year to State-owned South African power utility Eskom and 100 000 t/y to export markets through an offtake agreement with coal producer Exxaro Resources.
“This marks a significant milestone as we progress towards becoming a midtier coal producer,” said Universal Coal CEO Tony Weber.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Universal reports that the A$46.8-million project remains on budget and is set to deliver its first production by February.
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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