On September 20, the first of two Joy 14HM15 Continuous Miners arrived on site. As did two of the four 10SC32 Shuttle Cars.
Development activities at the site remain focused on advancing the twin declines. Completion of the surface infrastructure including offices, change-house and workshop are progressing in anticipation of mining starting in October.
As at September 20, the decline development contractor Murray & Roberts had advanced the declines a combined length of 593.3 metres.
The final 155m of the declines is forecast to be finished over the next five weeks to allow underground mining to start by October 30.
The Penumbra Coal project is about 60% complete with a total forecast cost to complete of about $39 million.
The mine development is expected to be completed within budget.
First drawings on the 253 million rand project finance debt facility ($A29.6 million) – with associated cost over-run facility of 17.5 million rand – are anticipated in the coming weeks.
Those drawings will be used to fund the outstanding capital development costs of the project development.
Continental forecasts 35,800 tonnes of run-of-mine coal production at Penumbra for the December quarter. It expects this to rise to 105,400t and 195,000t in the March and June quarters of 2013 respectively.
In the 2012-13 financial year, Penumbra is forecast to produce roughly 225,000t of export thermal coal at total free on board costs of 471 rand per tonne.
The coal will be railed to the Richards Bay Coal Terminal and sold under existing off-take agreements.