Kangala is controlled by ASX-listed Universal Coal plc and is located approximately 65km east of Johannesburg, in the Witbank coalfield in Mpumalanga province, which supplies more than 50 % of South Africa’s saleable export and domestic coal.
Simeka is the black economic empowerment shareholder in Kangala, having acquired a shareholding of approximately 30% during 2013.
An 8-year Coal Supply Agreement with the major South African power utility Eskom was executed in March 2013, renewable for another 8 years. A life-of-mine off-take Agreement was concluded with Exxaro Coal for the export thermal coal
product.
Mine development at Kangala commenced in May 2013 and the first saleable coal was delivered in April 2014, on time and within budget.
