The 50:50 joint venture, near Witbank, will produce 1Mtpa of thermal coal for the export market, via RBCT.
Construction of the 184 million rand ($US27.8 million) mine will commence in June next year with ramp-up expected in December 2007.
The mine had previously been approved by both the Kumba and Eyesizwe boards but was subject to the RBCT expansion.
The expansion is expected to be complete in July 2008 and will provide 6Mtpa of export capacity to members of the South Dunes Coal Terminal (SDCT), namely Kumba (2Mtpa), Eskom Enterprises (3Mtpa) and Anker Coal (1Mtpa).
Emerging BEE (Black Economic Empowerment) companies will be allocated 4Mtpa with a further 10Mpta expansion available for subscription.