Universal Coal has been granted a Mining Right over the Brakfontein Coal Project (5 0.29%-owned) by the Department of Mineral Resources.
Brakfontein, located within ~20 kms of the company’s Kangala Colliery in South Africa’s Witbank coalfield, has the potential to be Universal Coal’s third mine.
With the Mining Right in hand and having already secured the National Environmental Management Act (NEMA) authorisation, the project now only awaits the granting of the Integra ted Water Use Licence and the Waste Licence (IWUL) before development activities can commence.
Brakfontein currently hosts a JORC compliant thermal coal resource of 87.6 million tonnes, of which 70.5 million are in the measured category. The company is progressing well with a feasibility study, scheduled for finalisation by the end of the year.
Commenting on the granting of the Mining Right, CEO Mr Tony Weber said: “We are delighted to have taken another key step in the development of Brakfontein, which will be our third mine following successful development of the Kangala Colliery and the New Clydesdale Colliery acquisition.
“Kangala has excess capacity, enabling production to increase from its current 2.4Mtpa Run-of-Mine (ROM) rate to 4.25 Mtpa. Given Brakfontein’s close proximity to the Kangala Colliery, Universal Coal is evaluating the trucking of ROM coal to Kangala a s an option in the feasibility study, thereby substantially reducing capital development costs an d the scale of the water licence required.”
Universal Coal granted mining rights for Brakfontein in South Africa
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