Penumbra thermal coal project

The Penumbra thermal coal project is an underground mining project in South Africa to be operated by Continental Coal. The company states that the project will produce approximately 750,000 tonnes a year of run of coal, of which 500,000 mt would be primary export thermal coal. The company states that after processing there will be 500,000 tonnes a year for sale to EDF Trading and for "other export off-take agreements."

The mine is expected to start production in the second quarter of 2012 and full production is to be reached in the third quarter of 2012. It expects to produce 750,000 mt/year of run-of-mine The coal is to be exported through the Richards Bay Coal Terminal.

Financing
On Sep. 14, 2011, Continental secured $65 million funding from Barclays Bank for the mining of Penumbra.

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