Makhado
| Interest | 100%: 1.Awaiting MPRTO registration of right and/or section 11 consent. 2.Subject to Exxaro option 3.Including the Rio Tinto farm swap 4.CoAL holds 100% interest in the bulk of the farms and majority interest in all farms, and is in the process of acquiring 100% in the balance |
| Location | North of Soutpansberg 60km from Musina |
| Area | >23,000Ha |
| Resource | 1,335mt |
Overview
The Makhado coal project which CoAL has a 100% interest in is situated north of Soutpansberg, 60km from Musina in the Limpopo Province close to Rio Tinto’s Chapudi Project. During 2008, aeromagnetic surveying at the project was completed and since then in-depth geophysical modelling has been completed. The Makhado project covers an area of more than 23,000 hectares in the Mopane/Soutspansberg coalfield.
CoAL 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 memorandum of understanding 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 is close to 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 (Matola) in Mozambique.
Core analysis from the large diameter drilling programme have been completed with an indication of good quality coking coal. CoAL has received approval from the South African Department of Mineral Resources to extract a bulk sample from the project. Following the processing and laboratory analysis of the bulk sample, the coal will be provided to ArcelorMittal South Africa to test in their coking ovens at Vanderbiljpark for "value in use" analysis. This analysis will facilitate the finalisation specific terms and conditions of the proposed off take agreement.
The New Order Mining Right application process has begun with significant progress achieved on the Environmental Scoping Report, Environmental Impact Assessment and Environmental Management Programme. Preparation of the documentation required for the NOMR application has commenced based on the planned 5Mtpa production profile of the Makhado project. Submission will be done as soon as approval has been granted for the Rio Tinto farm swap by the DMR.
The latest resources statement indicate 305.7 Mt reconnaissance, 250.7 inferred, 548.6 indicated and 230.1 measured for a total in situ resource of 1,336 Mt.