Universal Coal has secured a water-use licence for its 50.29%-owned Brakfontein coal project from the South African Department of Water and Sanitation.
With the latest permit in place, the company now has all licences needed for development of the project.
Brakfontein is located within 20km of the company's Kangala Colliery in South Africa's coal region, the Witbank coalfield and hosts a JORC 2012 Mineral Resource of 87.6 million tonnes.
The company also secured mining rights and environmental authorisation under the National Environmental Management Act (NEMA) for the project.
The Brakfontein project is located in the Delmas district, 20km east of Kangala mine, and the area has access to roads and railways.
It hosts bituminous coal that would have to be beneficiated to produce saleable products.
A single thermal coal product for domestic power generation, produced at a wash density of 1.80, is considered to be economic for the project.
Recently, Universal Coal started production at its New Clydesdale Colliery (NCC) in South Africa. The mine NCC represents the company's second coal operation.
Expected production from the phase I of the colliery is 900,000tpa run-of-mine in export quality thermal coal.