Coal news and updates

Junior coal miner Universal Coal has reported maiden operating cash of A$3.9-million from is Kangala colliery, in South Africa, after it was commissioned in February this year.

 

The ASX-listed miner on Tuesday reported that 375 333 t of product was sold during the quarter ended June.

 

The company had increased its plant capacity to 4.25-million tonnes a year, accommodating a request from major power utility customer Eskom for higher specification coal from Kangala.

 

To accommodate the request, Universal said that a higher proportion of coal would be processed through the dense medium separation section of the coal handling and preparation plant, which would reduce overall sales by around 23% but would yield higher prices.

 

The company’s original two-million-tonne-a-year agreement with Eskom has been amended to ensure that net revenues received during this time would match the original agreement.

 

Source: http://www.miningweekly.com/