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The mining operation, called Mafube - a South Sotho word meaning "the dawn" or "new beginning" - would initially cost about R26-million to set up.
"Initially the mine will consist of an opencast operation and will employ contractors to supply 100 000 tons of coal per month to Eskom's Arnot power station,鈥� the companies said in a joint statement.
Thermal coal production was expected to start in July.
The two companies are also planning a feasibility study to establish a R1.6 billion open cut mine on the Mafube coal reserves. The study, to be completed by mid-2005, will look at establishing a larger opencast mine and coal preparation plant.
