ASX-listed Universal Coal (ASX: UNV) is committed to building a profitable mid-tier coal mining company providing investors with exposure to coking and thermal coal assets with the potential to develop into projects of significance.

The Company has a portfolio of producing, development and exploration assets located across South Africa’s
major coalfields.

Kangala Mine (Kangala), in the Witbank Coalfield, Universal’s first mine, commenced production in February 2014. Kangala produces an average of 2.4Mt of saleable thermal coal per annum, primarily for the domestic market. Kangala Mine has expansion plans to both the adjacent Middlebuilt and Eloff Projects.

The New Clydesdale Colliery (NCC) commenced production in 2016 and, as an underground and opencast operation, has enabled the Company to become a multi-mine and product producer, currently producing at 2.7mtpa, of which ~1Mt is destined for export (6,000kcal & 15% ash), the remainder supplying primarily the domestic energy market.

Universal’s third opencast asset, the North Block Complex (NBC), successfully acquired in 2018, is currently producing at a rate of 2.4Mtpa (annualised) primarily for the domestic energy coal market. The North Block Complex consists of the current Glisa and Eerstellingsfontein and the Paardpelaats Project. The Paardeplaats Project is adjacent, along the south-eastern border, and its coal resources are seen as a natural extension of the Glisa coal resource. Mining activities at Paardeplaats are envisaged to complement production at Glisa with a substantial increase in coal offtake for both the domestic and export markets.

The Ubuntu Colliery, is a fully regulated project with Mining Right, Environmental Authorisation and Integrated Water Use License and has acquired the surface rights. The Company has commenced the development of this project and a 1.2Mtpa Coal Supply Agreement with Eskom has been executed. First coal sales are anticipated in
November 2019.

In addition to the operating assets, the Company also has thermal coal projects (Eloff and Arnot South) and a coking coal prospect (Berenice/Cygnus) in the Soutpansberg Coalfield.

Universal Coal is generating sustainable cash flows from its diversified coal portfolio and is focussed on delivering growth through organic expansion and acquisitions. We are committed to creating value for all stakeholders by monetising our assets through internally generated cashflows and providing returns to our shareholders in the form of dividends.