Digging Deep- Continental CoalBy DaemonPosted in: Business...

Digging Deep- Continental Coal


By
Daemon
Posted in: Business Profiles






Click for the Continental Coal corporate brochure

_CONTINENTAL COAL- APRIL ISSUE



written by Daemon Sands


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. 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 costs 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 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,
effecting 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.
.
Tags: April Issue, coal, Conticoal, Daemon Sands, Mining, South Africa