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18
MODERN MINING
August 2016
MINING News
ASX-listed Universal Coal reported
recently that it has begun refurbishment
of the Coal Handling and Processing Plant
(CHPP) at NCC (New Clydesdale Colliery)
– located in the Kriel District south of
Witbank – in anticipation of the com-
mencement of thermal coal processing
in September (2016). NCC – which has
been on care and maintenance since late
2013 – was acquired by Universal from
Exxaro in 2014. It is adjacent to Universal’s
Roodekop property and Universal’s inten-
tion is to develop and operate the two
assets as a single project.
NCC will become Universal’s second
coal operation, following its Kangala col-
liery, which recorded a run-of-mine coal
production in excess of 3,2 Mt last finan-
cial year.
Ingwenya Mineral Processing is the
nominated on-site CHPP contractor
responsible for the recommissioning and
future operation of the plant. Mining
operations will begin in September 2016
at the Diepsruit shaft area in line with
the timing of the CHPP recommissioning
process.
Weighbridge infrastructure has already
been installed in anticipation of coal
product flows before the end of the 2016
calendar year.
According to Universal, negotiations
with potential off-take partners, including
Eskom, are reaching an advanced stage
with final assessment and selection of a
nominated off-taker to occur shortly.
Universal says that funding of the
return to operations of NCC will initially be
covered on an equity basis from existing
cash reserves. However, discussions con-
tinue with existing debt providers for the
enlarged Universal Coal Group.
Universal was recently
the subject of an A$126,4
million takeover bid by Coal
of Africa Limited (CoAL)
but the offer lapsed in mid-
July, with CoAL noting that
Universal’s long-term Coal
Supply Agreement (CSA)
with Eskom for NCC had
“not yet been finalised or
signed and that Universal
has therefore not yet com-
menced mining activities at
NCC, at which first coal was
expected to be produced
in the first half of 2016
as envisaged in the Offer
Document.”
Universal announced
on 18 July that it had taken
“an executive decision to
commence underground
mi n i ng ope r a t i on s a t
NCC with supply to the
export thermal coal mar-
kets and the balance of
product being sold in the
domestic space.”
The NCC infrastructure includes processing facilities with a capacity of 2,2 Mt/a. Part of the plant is seen here (photo:
Universal Coal).
Universal Coal starts on NCC plant refurbishment