Continental Coal (ASX: CCC) has increased its bank balance to further the development of the Penumbra, De Wittekrans and Vlakplaats Coal Projects with the financial settlement of its new partnership in South Africa.
The company has now received the total ZAR140 million (A$17.2 million) payment from Broad Based Black Economic Empowerment Company, Sishen Iron Ore Company Community Development Trust (SIOC-cdt).
SIOC-cdt is Continental's 26% partner in the company's South African subsidiary.
Continental has laid the foundations and has funding in place for substantial growth and a forecast increase in earnings.
The company has a current run of mine production of 2 million tonnes per annum of thermal coal with sales to the international export and domestic markets.
Continental also has a third coal mine, Penumbra, currently under development that is forecast to double export thermal coal sales and group earnings in 2012.
A fourth mine Bankable Feasibility Study has been completed confirming a technically and economically viable operation that is forecast to again double export thermal coal sales and group earnings in 2013.
When in operation the De Wittekrans Coal Project is expected to produce over 0.8 million tonnes of export sales, over 1.7 million tonnes of domestic sales, and annual earnings before interest, taxes, depreciation and amortisation in excess of US$50 million.
Continental's goal is to achieve 7 million tonnes per annum of run of mine coal production in 2013.
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