Upon completion, the DMS plant will enable production of export quality thermal coal, which will be exported out of the Richards Bay coal terminal from the end of July 2014 onwards.

Hot commissioning of the DMS circuit began on June 16, 2014. With the completion of the DMS, the entire colliery will be operational and completion testing as required by project financing arrangements may commence.

At design capacity, Kangala will produce 2.4 million tonnes per annum of ROM coal.

Production to date has met the company’s forecasts, with first quarter tonnage in line with the ESKOM supply agreement, which averages 2Mtpa over the initial eight years.

Following the commissioning of the DMS, Kangala will ramp up to steady state production volume during the next quarter.

Universal Coal is also finalising its New Clydesdale colliery acquisition.

When the acquisition is complete, New Clydesdale will be combined with the adjacent Roodekop project to fast track development of the company’s second operation.