Universal’s first operation, Kangala mine, reached steady-state production in the first quarter of 2015 and produced 1.7 million tonnes of saleable coal for FY2015.

Its second operation, the New Clydesdale colliery (NCC), is on track to begin production by the end of 2015.

From being an explorer with a resource base of less than 300Mt of coal in 2010, Universal has grown to become a cashflow positive producer with a 2 billion tonne total resource inventory poised to double production by the end of 2016, its CEO Tony Weber said.

“In April 2015, the company obtained a senior secured debt finance facility of $55 million from Investec Bank Limited, enabling us to fund the final phase of capital development at NCC,” he said.

“At full capacity, the new colliery will produce two million tonnes of coal per annum at the lowest costs quartile for high-end domestic markets.”

Long-term coal sales agreements are being negotiated with both power and metallurgical off-takers for the use of coal from NCC which, with reserves of 40.8Mt and a resource base of 165.4Mt, is expected to have a lifespan well in excess of 20 years.

Universal’s new financing facility will also be used to refinance the debt component of the development capital for Kangala mine.

Since the mine has now reached steady-state production, existing project finance facilities are being replaced with more favourable and flexible corporate debt facilities.

“We are entering a new and exciting growth phase,” Weber said. “Not only are we on track to double production by the end of next year, but having secured corporate debt financing on more favourable terms than project financing means that the company’s net value will be significantly enhanced, demonstrating its ability to bring long-life, multi-product coal operations to full production.”