It is reported that JSE listed coal mining company South African Coal Mining Holdings is well on track with capacity upgrades at its Umlabu colliery in Ermelo, Mpumalanga.

The Umlabu colliery currently exports 200 000 tonnes through the Richards Bay Coal Terminal, while it is awaiting its participation in RBCT phase 5, with an additional 500 000 tonnes of export allocation. The group will also supply 1.2 million tons of coal to Eskom as part of a 3 year agreement.

Ms Melanie Steyn ED of SACMH said that the company will be spending ZAR 400 million over 2009, with the first ZAR 200 million going to a new railing system. It will commission its new loading site, New Voorslag, at Umlabu Mine during October 2008, which is the first phase of construction.

Second phase construction of a 10 kilometers long overland conveyor from the coal plant to the siding will also start at the beginning of October, while construction of a flask load out system at the siding will start in the first quarter of 2009.

She adds that SACMH is also in negotiations with State-owned transport parastatal Transnet to electrify a railway line between the New Voorslag siding and Ermelo, which will add tremendous value to the mine. The electrification will assist in loading material at Umlabu, as well as increasing throughput and capacity at the new Voorslag siding.

In addition to opening up two more underground sections at Umlabu, SACMH will also add a new beneficiation plant which will provide a feed of 300 tonnes per hour. This mining infrastructure will equate to another ZAR 200 million capital injection.