Panfontein Coal Project (Mining)

OWNERSHIP

MR S Chetty (Owner of S&J Mining and Consortium) owns 55% of the project

PROJECT LOCATION
The Panfontein resources are located on 2 farms in the magisterial district of Vereeniging, south of the Rand Water Board and opposite Lethabo Power Station.  The major portion of the resource falls on the farm Panfontein 437-IR with a subordinate northern section of the reserves falling in the adjoining farm Uitvlught 434-IR.  The reserve is geologically an eastward extension of the NewVaal Coalfield but is separated from the latter by the course of the Vaal River

RESOURCE
The run of mine reserves has been calculated at 307.118 million tons of Low Grade Coal

 

MINING METHOD
Opencast – Selective mining.
Selective mining of the Top seam will reduce the ROM AS Del available for mining from 340.753Mt to 252.516 Mt.  This will however increase the grade of the coal. The Mine will be supported by sophisticated geological models and mine planning systems that combine to produce detailed, optimised schedules to ensure customer expectations of quality and quantity are consistently met in a timely manner

 

PRODUCT
The Panfontein Coalfield is a deposit of very low grade coal which can be exploited by opencast extraction.  The run of mine reserves has been calculated at 307.118 million tons of coal grading 14.50 Mj/kg (ADUC).  A ready market for such coal is not obvious apart from an Eskom Power Station, example Lethabo Power Station.  Although the average CV is at a bottom limit, it would provide however another 18 years life to Lethabo at 17million tons per annume

 

TARGET DEVELOPMENT
A Coal Supply Agreement (CSA) with the major South African power utility, Eskom will be entered into and finalized in 2014, upon granting of all regulatory approvals.

Currently S&J Mining Consortium (Pty) Ltd is sourcing funding for the project and the project will be Managed by Witbank Mineral Resources Services (Pty) Ltd

 

PROJECT HIGHLIGHTS

  1. 307.118 million Mt open-pit resources
  2. Development will commence May 2014, first production end 2014
  3. Section 11 completed.  Prospecting Right has been transferred and prospecting activities commenced
  4. Coal Supply Agreement (CSA) with Eskom to be concluded
  5. Mining right application submitted
  6. EMP and Social Labour Plans to be submitted in February 2014
  7. Application for environmental authorisation in terms of NEMA to be submitted
  8. Water use license application to be submitted