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Universal Coal enters sales deal for all coal output from Ubuntu colliery

Universal Coal PLC agreed to sell all of the coal produced at its Ubuntu colliery in South Africa to Eskom Holdings SOC Ltd., the South African power utility provider.

The Ubuntu colliery will deliver 1.2 million tonnes per annum of thermal coal to Eskom. The first coal delivery is set for November.

The company said Aug. 6 that the increase in sales volume underpins its confidence in reaching its sales target of 9.6 mtpa by 2021.

Universal Coal recently kicked off development of the Ubuntu colliery after closing the acquisition of its surface rights in April.