Continental Coal said it will begin production at its South Africa-based Vlakvarkfontein Coal Mine in the first quarter of the year after signing a three-year mining pact with Trollope Mining Services (TMS).
The mine will be the company's first South African project to start production, with others expected to begin production in six to 18 months.
TMS, which has been appointed as the mining contractor for development of the project, will manage the site and begin work in a fortnight on topsoil stripping and development of a workshop and offices.
TMS will also supervise mining and crushing work including the delivery of 100,000t of -40mm crushed coal every month.
Open cast mining activities at the site will begin in the later part of the first quarter of the year.
The mine is expected to annually produce 350,000t of export-quality thermal coal and 1,000,000t of domestic quality thermal coal.