DIGGING DEEP TO GET AHEAD

Continental Coal

As technology has changed the competition in this industry has increased exponentially and companies have had to expand and diversify to ensure their place in the future.

Continental Coal Limited is a South African thermal coal producer with a portfolio of producing and advanced coal projects located in the area’s major coal fields. Currently operating two mines, Vlakvarkfontein and Ferreira and producing thermal coal for the export and domestic markets, the Penumbra Coal Project their latest endeavour and is what Daemon Sands is having a look at.

There is a list of activities that enhance Continental Coal’s offering and increases the gap between them and other companies in this industry such as a high quality portfolio of advanced development/pre-production mines and a fantastic location in one of the world’s largest and most developed coal mining regions. Also, the surface infrastructure in their region is well established with solid rail, road, port and power availability to support their conventional open cast and underground mines.

Fundamental principles in this industry are a rare thing especially in South Africa’s bullish coal market but operating with a strong financial platform and robust operating margins, maintaining a close relationship with EDF Trading to review future opportunities has given them an exceptionally good outlook for the future where there are consolidation opportunities in SA, growth potential in Mozambique and other Southern African Countries.

PENUMBRA Penumbra is the next big development for Continental

Coal, an underground mine development it has taken the mobilisation of all key contractors to the development site and the commencement of civil works. The shaft portal excavation, terracing and pollution control measures commenced on 7 September 2011.

Activities at the Penumbra Coal Project site have increased significantly since 2011 as excavation of the box-cut, major civil works and environmental and pollution control measures proceed. The level of production from the Penumbra Coal Project is forecast to achieve a targeted rate of 750,000tpa run-of-mine a mere six months after first coal in the third quarter of 2012.

The Penumbra Coal Project has been developed at a capital cost of ZAR320m (approx. A$40m). The major of the capital expenditure will be incurred on development and infrastructure of the underground mine. There is no major additional capital expenditure associated with the coal wash plant, as the run-of-mine coal produced at the Penumbra Coal Project will be beneficiated through the existing processing operations which are currently processing production from the Ferreira Coal Mine.

In September, the box-cut, which serves as the first step in the excavation of most mining areas consisting of a single rectangular cut made in the surface of the earth, forming a box shape.

In basic surface mining, workers start by using the drill and blast methodology to create a box cut at the shaft site. The earth and rocks removed from this cut were used to create the terrace on the site for the surface infrastructure. This was promptly followed by the sinking off the two decline shafts, which have been positioned in order to access good quality coal with as little on-seam development as possible.

“Excavation of the box-cut into un-weathered and competent bedrock and mining of twin declines at a 1:7 inclination from the high-wall will proceed down to the C-Lower coal seam. The declines will be approximately 390m long, one equipped with a conveyor and the second serving as a trackless equipment travelling route. The declines will also serve as the primary ventilation intakes of the mine. Two mechanised

Coal has a long history in South Africa. It has provided fuel for homes, warmth for families and energy for businesses. The mining of coal provides jobs for thousands of South Africans and produces the country billions in revenue every year.

Continental Coal

coal production sections are planned, each with a continuous miner, both sections equipped with two shuttle cars each.” – Detail from conticoal.com

Companies with reputations as strong and as respected as Continental Coal always provide the benchmark standards for their industries and credit can be passed down-the-chain to the businesses involved in the providing the services, materials and equipment to various projects.

Especially today, the mining industry is a highly competitive industry and new opportunities need to be capitalized and worked upon as soon as possible to ensure the longevity and strength of a corporation. This has a knock on effect throughout the business, affecting not only the company but the employees. As mines age they require fewer staff so expansive projects such as Penumbra become essential.

Continental Coal’s community involvement and social responsibility commitment is aimed at encouraging economic development in the areas in which it operates.

This approach allows and encourages local people to work together to achieve sustainable economic growth and development. Continental Coal is thus promoting economic benefits and improved quality of life for all residents in the municipalities where it’s operations are situated. Continental Coal aim to assist local government and community structures to implement their own development priorities and realise new economic opportunities through the profit gained at our mining operations.

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G&F electrical drill with drill panel

Tel : (017) 819 3024 / (017) 819 3202 Cell: (082) 828 2966

Fax : (017) 819 2202

e-mail: dave@gilbertsmining.co.zaPO Box 2919, Ermelo, 235042 Havenga Weg, Ermelo, 2350

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GILBERT'S S.A.I.E.E. I.C.M.E.E.

Mining, Industrial & Electrical Suppliers

POWER CABLES

www.gilbertsmining.co.za

GILBERT'S S.A.I.E.E. I.C.M.E.E.

Mining, Industrial & Electrical Suppliers

POWER CABLES

Continental Coalwww.conticoal.com+27 11 881 1420

Written by Don Campbell

www.littlegatepublishing.com