The company has increased the coal researve estimate by 289% to 40.75 million tons and a 20% increase in coal resources to 165.4 million tons, as per the upgraded resource and reserve estimate.
Reported in accordance with the JORC 2012 code, the upgraded resource and reserve estimate for the NCC project follows the resource model development for the integrated NCC and Roodekop projects in preparation of the bankable feasibility study.
The feasibility study is due to be completed and will be presented to the Board later this month.
Universal Coal plans first coal mining from the NCC project in the second half of this year, which is located in the Witbank coalfields near Johannesburg.
The first phase of development is expected to produce 2 Mtpa run-of-mine (ROM) during first 10 years.
After this initial 10 years, the reserve remaining is adequate to double the life of NCC project, the company said.
Universal Coal CEO Tony Weber said: "We are entering an exciting growth phase with NCC set to double the company’s production once at steady-state.
"The trebling of the Reserves confirms NCC as a long-life, multi-product operation and further enhances the financial robustness of the project."
Universal Coal is negotiating with domestic power and metallurgical off-takers for long term coal sales agreements (CSA) for its product.
The company plans to proceed with the second phase of the feasibility into the expansion of NCC, once in full production, with the development of its underground resource base for the export markets.
