EastCoal has announced that the construction of the new wash plant located at the Menzhinsky Coal Mine in Ukraine is progressing on schedule and the company is expecting to process first coal in the present quarter of the year.

The company is also expecting the plant to generate positive cash flow in the quarter.

EastCoal chairman John Byrne said, "We are very pleased with the progress of the Menzhinsky wash plant and the planned cash generated from this operation will assist in financing the Company’s plans in the region."

The plant has been designed to process about 400 tons of material every hour and is estimated to produce around 91,000 tons of saleable coal in 2012.

The completion of the plant’s foundation work was achieved in June and the plant built in UK is now being assembled by a team of engineers and technicians from Keats Engineering.

Canada based Eastcoal is focused on developing coal in Ukraine and through its subsidiaries Ukraine Energy, East Coal Company and Inter-West Coal owns the Verticalnaya and Menzhinksy coal mines located in south-east Ukraine.