The company said first coal was expected to be processed in the current quarter. The foundations of the plant were completed in the UK last month.

Designed to process 400 tonnes of material an hour and anticipated to produce 91,000 tonnes of saleable coal in 2012, EastCoal said the plant was expected to commence generating positive cash flows in the current quarter.

“We are very pleased with the progress of the Menzhinsky wash plant and the planned cash generated from this operation will assist in financing the company’s plans in the region,” EastCoal chairman John Byrne said.

In June ILN reported EastCoal’s acquisition of the Menzhinsky coal mine in Ukraine, which contained JORC-compliant coal resources of 40.7 million tonnes.

The deal required the Canadian miner to pay Aponet Enterprises $US2 million cash upon transfer of ownership and four million common shares in EastCoal.

Menzhinsky was projected to yield 641,250t of coal and generate a net cash flow of $38 million in its first five years.

EastCoal focuses on the Donbass coal basin of Ukraine which has been known for its large coal reserves since the 1700s.