Coal-mining company LontohCoal has signed a two-year HK$800-million agreement with China-based Chuanhui Group for the delivery of 480 000 t/y of coal.
The company will transport anthracite from its Kwasa Anthracite colliery, in Mpuma- langa, to China Chuanhui Group subsidiaries Huangshan Cement and CH Clinker, in Ethiopia. The first shipment comprising 25 000 t is expected to be delivered in September.
LontohCoal CEO Tshepo Kgadima says this agreement broadens the company’s customer base and facilitates the growth of the company’s revenue and profitability within China.
LontohCoal is also negotiating long-term off-take contracts for anthracite and coking coal with several Chinese coal companies and has launched an aggressive production expansion plan by increasing the yearly output of anthracite to 1.2-million tons this year.
Further, the company’s Hlobane View colliery, in KwaZulu-Natal, will start production in the first quarter of 2012, with a targeted yearly output of 1.2-million tons.