Vele
| Interest | *100%: Awaiting MPRTO registration of right and/or section 11 consent. |
| Location | Limpopo Province |
| Area | 8,000 Ha |
| Resource | 720 mt:177mt measured |
Overview
The Vele coking coal project is located in the Limpopo Province. The Company was granted an unconditional New Order Mining Right on 2nd February 2010. CoAL will develop Vele in two phases, with phase one commencing in the first quarter of 2010 which will initially comprise the establishment of a modular coal treatment plant, and have the ability to deliver in the order of 1 million saleable tonnes (yield dependant) of coking coal per annum. Phase 2 will produce 5 million tonnes of coking coal per annum depending on prevailing market conditions.
- A Conversation with the MD: Simon Farrell
Capital expenditure on the Vele project to produce 5mtpa will be approximately R3 billion. CoAL is fully funded to develop Vele into a mine producing annual output of 1mtpa, and as with Makhado the bulk of the remaining expenditure is anticipated to be financed through cash-flow and contractor supplied mining equipment.
In terms of logisitics, the coal will be transported from the mine to the railhead by truck at first until necessary rail links have been completed. It will take 18 months to complete the rail spurs and loading facilities, which is about 40km from Vele and 25km from Makhado.
A revised mining schedule to include both underground and open-cast sections was announced H1 2009. This revised schedule will result in significantly improved coking coal yields, reduced mining costs and an extended mine life to beyond 2040. In line with the revised schedule, CoAL has selected MCC Contracts, a division of Eqstra Holdings Ltd, as its preferred partner to conduct opencast mining operations at Vele. An outstanding safety record, past performance, financial stability and technical skills are some of the aspects that CoAL considered in selecting MCC Contracts.
Rail allocation has been secured for both coking projects with Transnet Freight Rail (TFR) for one milion tonnes per annum (1mtpa) to the Matola dry bulk terminal. The rail capacity matches the current 1mtpa port allocation for the export of coking coal from both the Vele and Makhado projects. Third party coal has already been railed with success to ensure the practical viability of the rail and port allocation.
- Talking to the Communities
Expansion of the Matola Terminal is set to expand by an extra 2mtpa which CoAL has secured rights through a consideration for contributing loan funding. The expansion is expected to be completed in August 2010.
The Vele total in-situ resource is 720Mt.
Future
The Company is ready to launch Phase 1 immediately upon executing the New Order Mining Right. A significant amount of preparation has already been completed for Phase 1, and some capital expenditure committed to shorten the production lead time. Phase 2 expansion will deliver 5 million tonnes per annum of saleable coking coal based on prevailing market conditions.
If you have problems to download the documents please do not hesitate to revert to adminza@coalofafrica.co.za or perth@coalofafrica.com
Downloadable Reports
| Download Vele Final EMP Table 1.3.6 (PDF) | |
| Download Vele EMP Report - Low Resolution (PDF) |
Please note that the high resolution version of the EMP Report
and the ANNEXURES can be downloaded by using the FTP facilities below. Please note that you may need to click ’GO or ENTER" on the address bar to successfully access the site.
ANNEXURES:
ftp://196.41.3.212/Annexures/
Username: coa
Password: coa
High Resolution EMP REPORT:
ftp://196.41.3.212/FINAL EMP/
Username: coa
Password: coa
If you have problems to download the documents
please do not hesitate to revert to
adminza@coalofafrica.co.za or
perth@coalofafrica.com