Universal Coal (ASX: UNV) will start development of a second coal mine in the Witbank coalfield at its Roodekop project in South Africa.
Following a water licence being granted the coal miner has all the approvals necessary to begin developing the second mine.The Roodekop project has a total resource of 84.3 million tonnes with a proven reserve of 10.6 million tonnes.
Universal CEO Tony Weber said: “With our Kangala mine operating at steady-state and delivering to schedule, we are delighted to now have all the licences in place to commence development of our export-focused project, Roodekop.”
Universal is also set to acquire the New Clydesdale colliery that sits adjacent to the project, which will fast-track the activities at Roodekop to start before the end of the year.
“In essence, the combined New Clydesdale colliery and Roodekop contain sufficient coal resources to support the installed two-million-tonnes-per-year processing capacity at the colliery for the foreseeable future, with a significant proportion of production able to be beneficiated for the export market,” added Weber.
The development of both Roodekop and New Clydesdale will bring Universal Coal closer to becoming a mid-tier coal producer.