Universal Set to Become “Multi-mine Coal Producer”

Universal Coal plc (ASX:UNV) announced yesterday that it has entered into an agreement to acquire all the assets “and assume certain liabilities” of the South Africa-based New Clydesdale Colliery from Exxaro Resources Ltd. (OTCMKTS:EXXAY).

The company says the deal will help turn Universal into a “multi-mine coal producer.”

As quoted in the press release:

Located approximately 34km south of Emalahleni, in the Mpumalanga Province, [the colliery] is one of the oldest coal mines in South Africa, having been worked on sporadically since 1949, and operating as recently as December 2013. Historically, this operation has produced about 717ktpa of thermal coal from both underground and open pit operations, primarily for the export market through the Richard’s Bay Coal Terminal. The operation has an extensive resource base, and coal beneficiation facility with a run-of-mine throughput capacity of c.2.0Mtpa.

Click here to read the full Universal Coal plc (ASX:UNV) press release.