Johannesburg, South Africa — MININGREVIEW.COM — 03 June 2009 – Homeland Energy Group Limited’s South African unit – which is developing coal deposits in the country – says it hopes to begin trading its shares on the Johannesburg stock exchange within the next two years.
“A JSE listing is a natural fit for us and remains a goal, but it will be dictated by market conditions,” Homeland Mining and Energy SA Limited CEO Stephen Coates told reporters at Kendal Colliery in the eastern Mpumalanga province. “My hope is that within one to two years market conditions will be conducive,” he added.
“Homeland Mining currently sells 50% of its production contractually and the remainder on the spot market, all in South Africa,” said managing director Mike Nell. By the fourth quarter of this year, the company plans to sell 50% locally and 25% on the spot market, while exporting the rest,” he added.
“The company is ‘doing a deal’ to export coal to Turkey,” Nell revealed, but he would not provide further details.
Homeland announced last month that it had received a mining licence for its Eloff project, located 10 km south of Delmas, in Mpumalanga.
“While still at a “very early stage,” Eloff may produce up to 350 000 tonnes of coal a month, depending on the buyer, which may be a mine-mouth power plant,” Coates said. He added that Eloff could easily require in excess of R1 billion rand in capital investment.