Johannesburg, South Africa — MININGREVIEW.COM — 05 February, 2008 – Sesikhona Kliprand Colliery – a subsidiary of South African mineral exploration company Miranda Minerals Holding Ltd. – today announced that its application to convert the prospecting permit to explore and mine its KwaZulu-Natal property to a mining right has been accepted by the Department of Minerals and Energy (DME).
Revealing this in an announcement here today, the company pointed out that if the mining right is awarded, this would enable its joint venture partner, Ihlosi Project Mining to mine the coal and anthracite deposits on the colliery. The colliery consists of four contiguous farms and covers 884 hectares.
Sesikhona has entered into a joint venture with Ihlosi Project Mining to explore and mine the 22 million tonne Kliprand coal and anthracite deposit near Danhauser in KwaZulu-Natal. In terms of the JV agreement, Ihlosi has paid an initial fee of R1million, and will pay an additional R5 million on commencement of mining operations.
Sesikhona will thereafter earn R50 per ton of coal mined over the 20-year life of the project. Ihlosi has guaranteed a minimum of 30 000 tons per month, building up to an average of 50 000 tons per month.
Miranda holds an 88% interest in Sesikhona. The remaining 12% is held by the local Kliprand community, who are actively involved in the project and are represented on the board of Sesikhona.
Miranda chairman Alan Thompson points out that the permit stands to generate about 22 million tonnes of high-grade coal and anthracite, of which at least 40% can be mined using open cast methods. “Life of mine is estimated to be about 20 years, which equates to about R2.5 million per month in net annuity income for Miranda,” he adds. “We are confident that mining operations will commence towards the end of the second quarter.”