Continental Coal Ltd's (ASX:CCC) new South African mine has surpassed production targets barely two months after opening.
The Vlakvarkfontein coal mine located 100km east of Johannesburg, has exceeded its monthly target of 100,000 tonnes by producing 101,899 tonnes of thermal coal in July.
Continental Coal CEO Don Turvey said that to have reached the production target so soon after the first coal production blast on May 27 is testament to the planning and operational expertise of the mining contractor Trollope Mining Services and the key consultants and management of the company.
Don Turvey is confident that a sustained monthly coal production at a level of 100,000 tonnes will be achieved by the December 2010 quarter and carried beyond that. The company has already signed three preliminary off take contracts since it began production in May and it is expecting to enter into some longer term contracts in the next few months.
Shares in the company rose after the declaration. The Perth based Continental Coal has 10 coal projects in South Africa. These have the potential to produce more than 10 million tonnes of run of mine coal by 2015.