Universal Coal has signed an a binding sale of assets agreement with South Africa-based coal miner Exxaro Resources to acquire all the assets and assume certain liabilities of the New Clydesdale Colliery (NCC), located adjacent to the Universal Coal’s Roodekop deposit in the Witbank coalfield.

Universal Coal CEO Tony Weber said the Roodekop deposit comprises an 84 million tons coal resource, 82.9Mt of which is measured, and is waiting for water use license before development activities can commence.

"In combination with NCC’s established operation and infrastructure, the path forward to bringing our next mine on stream has certainly been fast tracked."

"The acquisition of NCC marks a major step forward to becoming a leading mid-tier coal producer, expediting development of our second operation immediately on the heels of commissioning our first operation, Kangala mine near Johannesburg."

Located in close proximity to both established road and rail infrastructure, with a private railway connection with Transnet Freight Rail to enable direct coal export, the NCC mine is equipped with mining machinery and infrastructure to operate three underground mining sections.