Continental beats monthly coal target

Shares in Continental Coal Ltd lifted after the South Africa-focused coal miner said it had eclipsed its monthlygrinding mill sold in zimbabwe prices production target for July. Continental shares were up 0.2 cents, or 3.23 per cent, at 6.4 cents at 1234 AEST. The Perth-based miner said it produced 101,899 tonnes of thermal coal during July at its Vlakvarkfontein coal mine, 100km east of Johannesburg, exceeding its 100,000 tonne monthly target.

"We are confident that sustained monthly coal production levels of 100,000 tonnes can be achieved in the December 2010 quarter and beyond," chief executive Don Turvey said in a statement on Tuesday. Since the company commenced production in May, it has inked three short term off-take contracts but said on Tuesday that it expected longer term contracts would be entered into in coming months. "With these preliminary off-take contracts already established, the company is well positioned to ensure 100 per cent of our forecast production at Vlakvarkfontein is sold into the domestic market at attractive coal prices which provide free cashflow to support our other mine development activities," Mr Turvey said.