With domestic sales of 2 million tonnes per annum to African utility Eskom and export allocation through Richards Bay coal terminal already secured, Kangala will be the company’s first operational coal mine.

With all the funding secured, Universal aims to achieve financial close on the Kangala mine project finance facility with Rand Merchant Bank on June 19.

Universal can then draw down on the 300 million rand ($US30 million) facility within the next month and make further drawdowns as need over of the capital expenditure development program.

Having already secured a coal sales agreement with Eskom, Universal is concluding an offtake agreement for its higher quality thermal coal which is to be finalised by the end of June.

Site office and facilities have been established and are operational.

Mine construction has started and topsoil removal is underway.

Construction of the processing plant terrace on the site is due to start next week.

Offsite construction of the plant is said to be progressing well with the initial seven conveyor structures and the structural steel work for the BC1 and BC2 raw coal crushing and screening plant complete.

The box-cut will begin in July and first coal from the box-cut is scheduled for October.

Initial coal from the box-cut will be used for the base of the stockpiles to prevent contamination at a later stage. Remaining box-cut coal will be used to commission the plant in December.

Mining equipment has begun arriving onsite.

Local labour recruitment has started with the establishment of a recruiting and testing office offsite in Delmas.

Many of the permanent mining staff vacancies have been filled, with on-the-job training of recruits starting soon.