South African coal challenges

With coal set to play a central role in Eskom’s bid to keep the lights on, London-based Universal Coal is scheduled to start production from its first mine, Kangala, a thermal project in the Witbank coalfield in Mpumalanga Province, in February 2014. There is infrastructure nearby and the four coal-fired power stations within a 70km radius offer a ready market. The mine has proven reserves of 20.8m tonnes and, in March 2013, the company signed a coal supply agreement with Eskom, committing to providing 2m t/yr from April 2014. Universal Coal listed on the Australian Stock Exchange in 2010 and is seeking to develop five coal projects in South Africa, all with established resources.