bloomberg article

Continental Coal May Export Half of Production From New Mine

By Nicky Smith

Feb. 10 (Bloomberg) -- Continental Coal Ltd., a southern African exploration and mining company, wants to export half the coal from its Vlakvarkfontein mine which begins production next month, Managing Director Bruce Buthelezi said.

The mines initial production of about 100,000 metric tons a month will expand to 200,000 tons a month by early next year once the coal-washing plant has been completed, Buthelezi said in an interview in Johannesburg today.

Work began today on the coal-washing plant at the mine in Delmas, about 70 kilometers (43 miles) east of Johannesburg, Buthelezi said.

Half of Vlakvarkfontein production will be washed and sold either in the domestic coal market to large coal users such as cement companies and paper makers or will be sold in the export market, Buthelezi said.

Continental may also start a venture at its Project X mine in South Africa with Total SA, Buthelezi said. Continental wont need capital for Project X if Total is chosen, he said.

We expect to hear something this week, Buthelezi said.

A $100 million loan is being arranged with a coal trading house, Buthelezi said, declining to name the company or terms of the agreement.