Perth, Australia — 13 August 2012 – Continental Coal “’ the Australian-listed coal- production and exploration firm operating in South Africa “’ says it hopes to produce first coal from the US$40 million Penumbra thermal coal mine, situated in the country’s Mpumalanga province, in the fourth quarter of 2012.
Miningmx reports that Penumbra, which has a nameplate capacity of 1.4Mtpa (ROM), is part of a strategy to build total coal production capacity of 7Mtpa.
“We set ourselves an aggressive timetable to bring Penumbra into production and have overcome some poor geotechnical issues in the first 100m of development,” said Continental Coal CEO Don Turvey in an announcement to the Australian Stock Exchange.
“With the advance rates continuing to improve and with strong performance from Murray and Roberts, we remain confident we can achieve first mine production coal from Penumbra early in Q4 of 2012, with the coal immediately washed through our existing Delta processing operations and available for export from our existing rail siding to Richards Bay Coal Terminal,” he said.
Penumbra is largely financed with R257 million from Absa Bank. In addition to the 2Mtpa in thermal coal produced from Continental Coal’s Ferreira and Vlakvarkfontein mines, the company is also setting about developing a fourth mine – De Wittekrans – which will have output of 3.5Mtpa (ROM).
The company has also unveiled some 2.2 billion tonnes in resources at three sites in Botswana. However, the drilling is too widely spaced for the resources declaration to be compliant with JORC, Australia’s resources reporting standards. Continental Coal said it would embark on a second phase of drilling in order to verify economic confidence in the resources.
Source: Miningmx. For more information, click here.