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

South Africa's Universal Coal has started the hot commissioning of the dense medium separation circuit of its Kangala mine's washing plant, bringing it closer to producing export quality thermal coal.

The junior miner said that full operations through the circuit should start on June 23, followed by completion testing required by the project financing arrangements.

It reiterated that it expected to start exports from Kangala, situated in the Mpumalanga province's Witbank coalfield, out of Richards Bay Coal Terminal from July onwards.

Universal's 70.5%-owned Kangala Colliery is expected to produce 2.1 million mt/year of salable thermal coal, of which 2 million mt/year will be sold to state-owned utility Eskom.

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