Project Highlights

  • Mine development completed February 2014, first sales commenced April 2014
  • Low cost Life of Mine open pit operation

Project Location

map_kangala

Ownership

70.5%

Coal resource (JORC compliant)

112.6Mt Resource (gross tonnes in-situ) inclusive of 16.3Mt Reserve

Product

~2.5Mtpa Eskom product; ~100ktpa 6 000kCal (nar) export product

In Production

Mine development at Kangala commenced in May 2013 and the first saleable coal was delivered in April 2014 – on time and within budget.

Kangala is located approximately 65km east of Johannesburg, in the Witbank coalfield in Mpumalanga province, which supplies more than 50% of South Africa’s saleable export and domestic coal.

The greater project consists of two properties; Wolvenfontein (location of the Kangala Mine) and Middelbult located near several coal-fired power stations and benefits from excellent road, rail and power infrastructure.

The project hosts a JORC compliant coal resource of 112.6Mt (gross tonnes in situ) of which 65.2Mt are measured (including 16.3 Mt proven Reserve), 15.1Mt indicated and 32.3Mt inferred.

An 8-year Coal Supply Agreement (CSA) with the major South African power utility Eskom was executed in March 2013, renewable for another 8 years.

The additional resource base at Kangala potentially allows for a total mine life exceeding 20 years by means of developing the adjacent Middelbult pit.

The operation is being run on an outsource model managed by an Universal Coal on-mine management team, with Stefanutti Stocks Mining Services supplying both the mining fleet and skill set to run Wolvenfontein pit, operating a fleet of 100t trucks, 85t and 120t excavators and supporting equipment. The dual circuit processing facility, a 350tph crushing and screening circuit plus the 320tph DMS washing plant is owned by Universal with the operation thereof outsourced to Mineral Resource Development (Pty) Ltd.

Regulatory Approvals

  • Mining Right – granted.
  • Environmental Authorization in terms of NEMA – granted
  • Waste License in terms of NEMWA – granted.
  • Integrated Water Use License (IWULA) – granted.
  • Land rezoning – granted for Wolvenfontein.
  • Middelbult Mining Right application lodged with the Department of Mineral Resources.

 

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