South African junior miner Universal Coal announced Monday it had achieved record run-of-mine (ROM) production of 1.04 million mt from its Kangala Colliery in the Witbank coalfield during the April-June quarter.
The output was 47% higher on the year and had increased 35% on the previous quarter, which Universal attributed to a steady state of production after pit reconfiguration in previous quarters.
Total ROM production for the 12 months ended June 30 was 3.27 million mt, 32% higher than in the 2014-15 financial year.
"Having concluded the pit reconfiguration, Kangala is now firing on all cylinders, and delivering record production in the process. We anticipate increasing production further in the year ahead," Universal said.
It added that the country's dry season was halfway over and climatic conditions were expected to support continued strong production for the months ahead.
Universal said in its quarterly report that it had also achieved quarterly sales of 609,120 mt from Kangala, climbing 20% year on year and a 39% increase on the quarter.
Export sales for the quarter at 33,351 mt were almost five times the 5,671 mt sold a year ago and almost six times higher than the previous quarter's 6,000 mt.
Domestic sales for the April-June quarter rose 14% from the same quarter in 2015 and also jumped 34% from the January-March period to 575,769 mt.
For the full year running from July 2015-June 2016, total sales were 2.04 million mt, rising 21% on-year, with export sales for the period at 78,000 mt, up 47%.
Full-year domestic coal sales amounted to 1.96 million mt, 20% higher on the year.
Universal said it was set to start commissioning of the underground operation at its second operation, the New Clydesdale Colliery, with first coal production expected by the end of the July-September quarter. The colliery is set to produce 2 million mt/year of coal at full capacity.
"At New Clydesdale Colliery, we continue to engage with Eskom regarding the Coal Sales Agreement and possible short-term supply opportunities. With the recent recovery in global thermal coal prices, we have made a decision to commence commissioning the underground mine, further operational details will be released to the market by July 31, 2016 in this regard," the miner said.
