The start of underground production at the mine took the company’s coal operations in South Africa to three.

“Penumbra will soon be making its first export thermal coal sales and generating its first cashflow,” Continental Coal chief executive officer Don Turvey said.

“It is set to be a long-life and low-cost operation, which should generate significant and sustainable returns for shareholders.”

First thermal production from Penumbra was achieved from underground development activities by the decline contractors Murray & Roberts.

The twin declines were advanced into a full face of the C-Upper and C-Lower coal seams.

The declines first developed into the C-Upper coal seam in mid-November and subsequent advances of the declines have fully exposed the C-Upper and C-Lower seams.

Run-of-mine coal has been stockpiled and is being hauled to the company’s Delta Processing Operations to be put through the existing wash plant.

ROM production from development activities in the declines will continue over the next five days as the first of two 14HM15 Joy Continuous Miners is commissioned.

Full-scale underground mining activities are due to state later this month.

ROM production of 5000-10,000 tonnes is forecast for the December quarter, ramping up to the targeted ROM rate of 63,000t per month by June 30.

First export coal sales from Penumbra are expected in December.