NCC will become Universal's second coal operation following its Kangala colliery also in South Africa, which recorded run-of- mine coal in excess of 3.2 million tonnes last financial year.
Ingwenya Mineral Processing has been nominated as the on-site CHPP contractor responsible for the recommissioning and future operation of coal processing requirements at NCC.
Mining operations will begin in September at the Diepspruit shaft area in line with timing of the CHPP recommissioning process.
Weighbridge infrastructure has already been installed in anticipation of coal product flows before the end of the 2016 calendar year.
Negotiations with potential off-take partners, including Eskom are reaching an advanced state with final assessment and selection of nominated off-taker to occur shortly.
Funding of NCC’s return to operations will initially be covered on an equity basis from existing cash reserves. However, discussions continue with existing debt providers for the enlarged Universal Coal Group.
