The first thing to understand about Somkhele is its long-term potential, the rationale for its expansion. But it is also important to understand the wider long-term role of metallurgical coal in the Petmin portfolio. Somkhele produces 550,000 tpa of saleable anthracite through its existing washing facility. The company is adding an additional 550,000 tpa capacity through the development of a second plant that it expects to come online at the end of Q1 2012. The increased volume from this plant will significantly lower the unit cost of production at Somkhele.
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