Kangala boosts resource in RSA

SOUTH Africa-focused developer Universal Coal has increased the JORC resource at its Kangala thermal coal project east of Johannesburg to 146.8m tonnes inclusive of reserves.
Kangala boosts resource in RSA Kangala boosts resource in RSA Kangala boosts resource in RSA Kangala boosts resource in RSA Kangala boosts resource in RSA

Universal Coal's projects in South Africa.

Justin Niessner

This 18% increase over the previous 124Mt total follows completion of a 30-hole drilling program.

The coal resource includes 19.5Mt proved reserves, 74.18Mt measured, 19.48 indicated and 33.64Mt inferred resources.

Universal says potential exists to increase the project’s resource further as the company has recently acquired prospecting rights to a 215-hectare area adjacent to the proposed Kangala mine.

Universal chief executive Tony Weber said the resource update improved confidence levels concerning the project.

“This confirms our belief that the Kangala project hosts a significant resource capable of supporting a life of mine for the proposed Kangala project well in excess of the current planned eight years at [bankable feasibility study] production levels”

Earlier this month, the developer signed a 16Mt coal supply deal between Kangala and local power utility provider Eskom.

The proposed open pit is expected to produce its first coal in late 2013.

Universal is also developing the Berenice-Cygnus project in South Africa’s emerging Soutpansberg coalfield which the company says has potential to produce 10Mtpa of both primary soft coking coal and secondary thermal coal.

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