Vele

Ownership: 100%
Location: South Africa Limpopo province, 48km west of Musina.
Infrastructure: Electricity supply secured from Eskom.; Host properties have existing water uses which have been transferred to the mining operation.; Accessible via existing tarred road network; initially the coal will be transported by truck to a railsiding (approximately 40km from Vele) until rail links have been completed.; Extensive engagement with Transnet Freight Rail (TFR) to create capacity for domestic and export capacity.
Resource: 369.93 million mineable tonnes in situ (MTIS) as classified under JORC.
Mining method: Both opencast and underground workings suitable for modular staged development.
Product: Blended semi soft coking coal.; Phase 1 to deliver 1Mtpa.
Permit status: New Order Mining Right approved and Environmental Management Plan (EMP) executed in March 2010.; Integrated Water Use Licence granted in May 2011 but has been suspended due to an appeal to the Water Tribunal submitted by an NGO coalition in July 2011. The minister lifted the suspension of the licence on 19th October 2011.; Compliance Notice lifted on 5 July 2011.
Latest developments: Phase 1 of the project is fully funded from existing cash reserves. Letter of Intent with ArcelorMittal SA to take up to 5Mtpa from Vele and Makhado to supply steelworks at Vanderbijlpark. MCC has been selected to conduct opencast mining operations and Minopex to operate the coal washing plant.

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