The ASX-listed coal miner has completed a resource model for the integrated New Clydesdale Colliery and Roodekop projects in preparation of a bankable feasibility study that is due for completion and presentation to the board later this month.
In the Witbank coalfields near Johannesburg, NCC is poised to become the company's next operation, with first coal expected in the second half of this year.
The first phase of development will produce two million tonnes per annum run-of-mine over an initial 10-year period.
The reserve remaining after the initial 10 years of life is sufficient to double the life of NCC.
The reserves have increased by 289% to 40.75Mt and resources are up 20% to 165.4Mt.
“We are entering an exciting growth phase with NCC set to double the company's production once at steady-state,” Universal Coal CEO Tony Weber commented.
“The trebling of the reserves confirms NCC as a long-life, multi-product operation and further enhances the financial robustness of the project."
Ministerial approvals are progressing, and are expected to be finalised during the current quarter, while Universal is well advanced with negotiating long-term coal sales agreements with both domestic power and metallurgical off-takers for its product.
The opencast tender process for the mining at Roodekop has been completed and a preferred contractor nominated.
Contractual agreements are in the process of being drafted, and the tender process for the operation of the processing plant has begun.
Debt funding proposals for the financing of the balance of the NCC mine development program are well advanced with local banking institutions.
Once in full production, the company will proceed with the second phase of the feasibility into the expansion of NCC with the development of its underground resource base for the export markets.
The NCC Roodekop coal project is in the Kriel district, 35km south of Witbank, and immediately south of Exxaro Coal’s New Clydesdale colliery.
Universal already operates the 2.1Mtpa Kangala mine about 65km east of Johannesburg, in the Witbank coalfield in Mpumalanga Province, which supplies more than 50% of South Africa’s saleable export and domestic coal.
