TMS mobilised to site on February 15 and has rapidly moved towards commencing prestripping activities.

As part of these topsoil stripping activities in the box-cut area, TMS is forecast to remove up to 10,000 cubic metres by early March 2010.

By this time a two-shift operation will have commenced with another excavator and three more dump trucks already onsite, allowing TMS to further increase prestripping activities to more than 6000 cubic metres of material per day.

The first blasting operations are expected to commence within three weeks.

Mining from the 5m-wide No. 4 seam will start in the second quarter. Monthly sales production of 100,000 tonnes of a predominantly domestic-quality thermal coal are scheduled to begin in May 2010 before ramping up to full production by August.

Continental Coal managing director Bruce Buthelezi said, “While only recently appointed, TMS have proven that they are clearly a mining contractor capable of meeting our production deadlines for the development of the Vlakvarkfontein coal mine.”

TMS has successfully established a forum with the local community, with initial recruitment from this community already underway.

It has also hosted a number of visits to site by community leaders, government authorities, potential offtake/equity partners and likely service providers.

TMS has begun construction of its workshop and offices as part of the site establishment, which is expected to be completed by mid-March.

Continental Coal shares were steady this morning at A5.1c.