Kangala mine, located in the Mpumalanga province, currently preparing for a nameplate capacity of 2.4Mtpa, of which 2.1Mtpa is saleable.
The company expects to deliver its first coal in March, as per the two million tonnes per annum (Mtpa) offtake agreement with South Africa’s power utility, ESKOM.
Universal Coal CEO Tony Weber said the move marks a significant milestone, as the company progresses towards becoming a mid-tier coal producer.
"Kangala will provide steady and strong cashflow for the decade to come, laying the foundation for further growth in helping to fund the progress of our pipeline of quality coal assets, including our next operation, Roodekop/New ClydesdaleColliery," Weber said.
Universal Coal has five coal projects in South Africa with 1.9 billion tonnes of joint ore reserves committee resources, covering thermal and coking coal, of which more than one billion tonnes is attributable to the company.
