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Universal Coal plc (ASX:UNV) announced yesterday that production has started at its South Africa-based Kangala coal mine.
Universal Coal plc (ASX:UNV) announced yesterday that production has started at its South Africa-based Kangala coal mine.
As quoted in the press release:
First delivery of coal will commence during March 2014 in line with our first commercial production having commenced in February as per the 2Mtpa offtake agreement with South Africa’s leading power utility, ESKOM. Remaining production will target the lucrative export markets, via a 100 ktpa offtake agreement with leading South African coal producer Exxaro Resources.
Tony Weber, CEO of Universal, commented:
This marks a significant milestone as we progress 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 Clydesdale Colliery.
Click here to read the full Universal Coal plc (ASX:UNV) press release.