Universal Coal receives financing for New Clydesdale coal project in South Africa
Universal Coal has secured A$55m($44m) senior secured debt finance facility from Investec Bank for development of in New Clydesdale colliery in South Africa.
The finance will enable the company to fund the final phase of capital development of its second mining operations in New Clydesdale colliery (NCC), in Witbank.
The development at the NCC project is scheduled to begin later this year and at full capacity, it will produce two million tons of coal a year, which will be supplied to domestic markets.
Universal coal has completed the feasibility study for the initial phase of the NCC project.
Project development is expected to continue as per schedule, and the onsite mining activities are expected to start after the completion of coal supply agreement.
Universal Coal CEO Tony Weber said: "Once we reach steady state production at NCC, the company's net production will have double.
"Furthur, by securing corporate debt financing on more favourable terms than project financing, Universal Coals net value will be significantly enhanced, and its ability to bring long-life, multi-product operations to full production demonstrated."