Tegeta will honour the original coal supply contract Optimum coal mine had in place

ASX-listed Universal Coal has exported the first thermal coal from its 70.5% owned Kangala Colliery has commenced.

Kangala produces at the rate of 2.4 million tonnes per annum (Mtpa) run of mine of thermal coal in the Witbank coalfield of South Africa, with installed processing plant capacity of 4.25Mtpa. The company is targeting export sales of 100,000 tonnes per annum from Kangala.

Under the previously disclosed Agreement for the Supply and Purchase of Coal (“SPC”) with Exxaro Coal (Pty) Ltd and Exxaro International Trading AG (collectively “Exxaro”), the Kangala Colliery will deliver coal via road transport to Exxaro’s nearby Leeuwpan Mine, making use of Leeuwpan’s infrastructure and access rights to the Delmas siding. Trains destined for the Richards Bay Coal Terminal (“RBCT”) will each be loaded with 6,000 tonnes of coal for delivery to RBCT following which the coal will be marketed and exported by Exxaro.

Universal Coal has been granted export allocation for 51,000 tonnes per annum through the RBCT Quattro Entitlement scheme and has applied to the South African Department of Mineral Resources to increase this further in anticipation of increased export sales, once the acquisition and re-commissioning of the New Clydesdale Colliery is finalised.

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