Kangala Colliery

The greater project consists of two properties — Wolvenfontein (location of Kangala) and Middelbult located near several coal-fired power stations and benefits from excellent road, rail and power infrastructure. VIEW MAP

Location Witbank Coalfield, Mpumalanga province
Coal resource (JORC compliant) 98.69Mt Resource (gross tonnes in-situ) inclusive of 28.3Mt Reserve
Ownership 70.5%
Operation Open pit, truck and shovel
Number of employees 62
Sales 2Mtpa off-take agreement with Eskom, until 2023, export sales at spot market pricing
Current LoM 1 year with the potential to exceed 20 years when including the Eloff Project and Middelbult extensions

An eight-year Coal Supply Agreement with the major South African power utility Eskom is valid until 2023.

The additional resource base at Kangala potentially allows for a total mine life exceeding 20 years by means of developing the adjacent Middelbult pit.

The operation is being run on an outsource model managed by an Universal Coal on-mine management team, with Stefanutti Stocks Mining Services supplying both the mining fleet and skill set to run Wolvenfontein pit, operating a fleet of 100t trucks, 85t and 120t excavators and supporting equipment. The dual circuit processing facility, a 350tph crushing and screening circuit plus the 320tph DMS washing plant is owned by Universal with the operation thereof outsourced to Mineral Resource Development (Pty) Ltd.