Makhado
| Interest | 100% |
| Location | Nth of Soutpansberg 60km from Messina |
| Area | >23,000Ha |
Overview
The Makhado coal project which CoAL has a 100% interest in is situated north of Soutpansberg, 60km from Messina in the Limpopo Province close to Rio Tinto’s Chapudi Project. During the year, aeromagnetic surveying at the project was completed with in-depth geophysical modelling underway. The Makhado project covers an area of more than 23,000 hectares in the Mopane/Soutspansberg coalfield.
CoAL in the past weeks entered into a joint venture deal with Rio Tinto Coal companies in the Limpopo Province. The Rio associates, Kwezi Mining, Chapudi Coal and CoAL signed a deal which involved a joint venture and farm swap agreement. The rationalisation of the Chapudi and CoAL farms provides a significant benefit to both companies in terms of bringing the collective properties into commercial production.
Makhado straddles the railway line which runs from Musina and which is an important link to the Richards Bay Coal Terminal. The alternative route, through Mozambique to the port of Maputo, requires an upgrade which has been committed by the owners of both the rail line and the Maputo coal terminal. CoAL has initiated discussions with parties associated with the infrastructure and believe at this stage that exports will be shipped through the Maputo port rather than Richards Bay.
The acquisition of Petmin Ltd’s 50% interest in the Baobab Coal Project was completed during 2007 through the issue of 8,333,333 GVM shares to raise the required purchase price of GBP2.5 million (A$6.2 million). During June 2007, GVM acquired the remaining 50% of the Joint Venture held by Motjoli Resources with the issue of 20,000,000 GVM shares.
Future
Production at Makhado hard coking coal project (formerly known as Baobab), will commence in 2009 with planned production of between 1mtpa-1.5mtpa in 2009, ramping up to 5mtpa by 2012.King Toni Mphephu Scholarship
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Application Form - King Toni Mphephu Scholarship 10 November 2008 – PDF – 95.3 kb |