Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Universal Coal has announced a Coal Supply Agreement (CSA) with Eskom for 100 per cent of Ubuntu Colliery’s coal production
  • Ubuntu will deliver 1.2Mtpa of thermal coal to Eskom with the first coal delivery planned for November 2019

Universal Coal has announced a Coal Supply Agreement (CSA) with Eskom for 100 per cent of Ubuntu Colliery’s coal production.

Under the CSA, Ubuntu will deliver 1.2Mtpa of thermal coal to Eskom with the first coal delivery planned for November 2019.

The Ubuntu Colliery is a new mine that is currently being developed and is fully funded.

The mine is located in the Delmas, South Africa and located within 20km of the company’s Kanagala Colliery.

Ubuntu is compliant thermal coal resource of 75.8 million tonnes of which 31.7 million tonnes is measured.

The mine plan comprises a contract opencast mining operation supported by crush and screen on-site coal benefaction.

Universal is a sustainable mid-tier coal company which focuses on exploration and development in South Africa.

Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers.

Eskom produces 95 per cent of the electricity in South Africa and approximately 45 per cent of the electricity in Africa is also generated by Eskom.

Universal Coal CEO Tony Weber is pleased with the agreement.

“The CSA ensures the continued growth of guaranteed revenues in the face of fluctuating export thermal coal markets, and enables Universal to continue to fund further development and grow returns to shareholders,” he said.

Once it’s up and running, Ubuntu will be Universal’s fourth operation to come online over a six-year period.

Universal has gained 1.79 per cent today and is currently selling shares at 28.5¢.

UNV by the numbers
More From The Market Herald
Bellevue Gold (ASX:BGL) - Managing Director, Steve Parsons

" Bellevue Gold (ASX:BGL) completes $200m loan facility

Bellevue Gold (BGL) has executed a project loan facility totalling $200 million with Macquarie Bank (MGQ).

" E79 Gold Mines (ASX:E79) kicks off drilling at Laverton South

E79 Gold Mines (E79) has kicked off its maiden drilling program over its Laverton South Gold Project in Western Australia.
Miramar Resources (ASX:M2R) - Executive Chairman, Allan Kelly

" Miramar Resources (ASX:M2R) outline large gold footprint at Glandore Project

Miramar Resources (M2R) has outlined a very large gold footprint at its Glandore Project in the Eastern Goldfields region of Western Australia.

" Southern Hemisphere Mining (ASX:SUH) begins RC drilling at Llahuin

Southern Hemisphere Mining (SUH) has begun reverse circulation (RC) drilling at its Llahuin Copper-Gold-Molybdenum Project.