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Continental Coal extends Shanduka coal supply deal Junior miner Continental Coal has extended its coal supply agreement with Shanduka indefinitely, says GM for operations Mike Nell.
The company supplies between 85% and 90% of its coal production to black-owned Shanduka.
Nell tells Mining Weekly Online that the coal supplied to Shanduka is primary used at Eskoms Majuba power station, 100 km away from Continentals Vlakvarkfontein project.
The agreement with Shanduka is open-ended in that should Continental strike a coal supply agreement with Eskom, then that will be its primary focus and the deal with Shanduka will become a secondary focus, says Nell.
He adds that negotiations with Eskom are progressing well.
Of particular importance to the company, is that it has reached an agreement with a local farmer to mine coal on previously owned farmland adjacent to the current Vlakvarkfontein resource. Nell says that the company will be phasing in the coal from that resource and will develop the new area extensively by the third quarter.
Continental previously had issues whereby Eskom rejected coal from Vlakvarkfontein owing to its high sulphur content. However, the company is now selling the coal to a local beneficiator, which washes the high-sulphur content coal and sells it into the market.
Meanwhile, Continental has made significant safety progress, with the company only a month away from achieving 365 days without a reported loss-time injury.
This is something that the company is proud about. Continental Coal sticks to the basics and it is working well for the company, says Nell.
Continental started production at Vlakvarkfontein in May last year.
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