The Johannesburg-based company will begin production at the mine, located in the Mpumalanga province, in 2013.

Water management infrastructure construction is currently ongoing at the site and Sentula has also initiated the water management plan, reported Mining Weekly.com.

Nkomati was earlier placed on care and maintenance in May 2011 as the company awaited several environmental licenses approval.

The mine contains indicated resources of 4.4 million tons and proven reserves of 7.2 million tons.

Coal output over 80 years of mine life is expected to cater to the domestic and international metallurgical coal markets.

The Nkomati mine is jointly owned by Sentula Mining and the Mpumalanga Economic Growth Agency.