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February 2017
MODERN MINING
15
MINING News
ASX-listed Universal Coal has secured a
five-year, 650 000 sales tonnes per annum
export contract with a global commodities
trader, providing additional security for the
New Clydesdale Colliery (NCC) debt facility
and enabling commencement of opencast
operations.
The opencast operation represents the
second phase of the planned 3,3 Mt/a ROM
NCC development, following the com-
mencement of underground operations in
September 2016.
The underground operation delivers
primarily 6 000 kcal thermal coal, focused
on the export markets, from the Diepspruit
shaft, and is set to achieve nameplate
annualised tonnage rates of 900 000 t/a
ROM by the end of the current quarter.
Opencast operations will deliver a
further 2,4 Mt/a ROM premium quality
domestic thermal and ‘low phos’ metallur-
gical coal from the adjacent Roodekop pit
once steady state is achieved in mid-2017,
translating to contracted sales tonnes of
1,2 Mt/a to Eskom and 0,1 to 0,2 Mt/a of
low phos metallurgical coal sales.
Universal’s CEOTonyWeber commented:
“With both the Eskom and the long-term
export offtake agreements now secured
for NCC, the debt funding is now near
complete, thereby having allowed for the
commencement of the Roodekop open-
cast operation. Additionally, the long-term
export coal contract provides us with sig-
nificant exposure to the improved thermal
coal export market and further advances
our revenue diversification strategy.
“Upon achieving steady state at NCC
mid-2017, Universal and our partners will
be producing saleable coal at a rate in
excess of 4 Mt/a over our two operations
from a total ROM exceeding 6,5 Mt/a. We
expect NCC to generate robust cashflow,
complementing contributions from our
first mine at Kangala, positioning Universal
well to fund future growth while underpin-
ning a dividend return going forward. We
remain growth oriented with a focused
and disciplined approach in advancing
our excellent project pipeline for further
organic growth,”Weber continued.
Opencast operations start at New Clydesdale
During the December 2016 quarter,
NCC delivered first export quality coal
sales totalling 107 570 tonnes from the
Diepspruit underground operation, ramp-
ing up from 27 710 tonnes in October to
42 860 tonnes in December. Currently two
of the three coal handling and preparation
plants (CHPPs) are operating, with the third
CHPP set to be operational by the end of
the first quarter of 2017.
Tr o l l ope M i n i ng S e r v i ce s, t he
appointed opencast mining contractor
for the Roodekop operation, has started
site establishment activities and has also
commenced with stripping overburden in
lieu of the box cut development.
Bannerman starts on update of Etango DFS
ASX-listed Bannerman Resources has
startedwork on a Definitive Feasibility Study
(DFS) update for its flagship 100 %-owned
Etango uranium project located in Namibia.
This follows the successful completion of
the Etango heap leach demonstration plant
programme.
The six-phase demonstration plant pro-
gramme was initiated in 2014 with excellent
results reportedly being generated across
all phases. Among other things, the test-
work demonstrated exceptional leaching
dynamics (93 % extraction in 22 days) and
lower acid consumption (14,4 kg/tonne),
confirming Etango’s low potential risk.
“Our two year commitment to the Etango
demonstration plant programme has been
a remarkable success,” comments Brandon
Munro, CEO of Bannerman. “Not only have
we consolidated Etango’s position as one
of the most advanced large uranium proj-
ects globally, but we have also generated
substantial opportunities to enhance and
further de-risk the Etango project.
“Combined with the excellent internal
engineering our team has undertaken over
the last year, and partnering with AMEC
Foster Wheeler, we can now evaluate a
stream of potential capital and operating
cost wins that should collectively deliver a
DFS Update which substantially improves
Etango’s forecast economics.”