Continental Coal grows South Africa coal production assets in milestone deal

Continental Coal has significantly enhanced its portfolio of South African production assets with its subgold leach circuit for salesidiary Continental Coal Limited (CCL) entering into a binding heads of agreement to acquire 100% of the shares of unlisted South African thermal coal mining and export coal producing company Mashala Resources.

The acquisition provides Continental with immediate export coal production from the Ferreira open cast mine which exported approx. 600,000 tonnes in FY 2009. Also, the Richards Bay Coal Terminal (RBCT) allocation and Transnet rail contracts are in place, enhancing the company’s key logistics capabilities. Continental’s global in situ resources have increase by approximately 290% to 631Mt and will commence immediate development of the acquired and fully permitted Penumbra underground project into a 500,000tpa export thermal coal operation. The acquisition provides Continental with existing 300tph wash plant operation and rail siding only 3km from the existing open cast mine and Penumbra underground project.