The prospecting right is valid for four years from date of execution and covers 215 hectares between two existing operations including Exxaro’s Leeupan coal mine.

The site is also immediately adjacent to Exarro’s coal load-out rail loop.

Universal chief executive Tony Weber said the prospecting approval was pursued as part of the company’s plan to increase coal holdings around its core project areas.

“We are delighted to have secured an additional prospecting right in the Kangala area,” he said.

“This is in line with Universal’s strategy of further developing the available resource base around the company.”

Kangala is planned to be an open pit mine in the Witbank coalfield with first coal production expected in the second half of 2013.