The proposed plans come after the company secured integrated water use license for Roodekop, which will soon commence development activities.

Located adjacent to the New Clydesdale Colliery, the Roodekop’s proved reserve estimate has been raised to 10.6 million tons after a drilling program last year.

Universal Coal said that the integration of geological data for the NCC and Roodekop is underway and an updated resource and reserve estimate for the combined project is planned to be completed in the first quarter of 2015.

Universal Coal’s CEO Tony Weber said: "Once the acquisition of NCC is completed, we will operate NCC and Roodekop as one complex, taking advantage of the natural synergies in place.

"In essence, the combined NCC Roodekop contains sufficient coal resources to support the installed 2.0Mtpa processing capacity at NCC for the foreseeable future, with a significant proportion of production able to be beneficiated for the export market."

With the development of NCC Roodekop, Universal Coal is progressing to become a mid-tier coal producer.

The company has recently received commitments from IchorCoal and Coal Development Holding for around $25.5m.