The Waterberg Coal Project joint venture (JV) partners, through Sekoko Coal, have entered into an agreement with the Lephalale Municipal Council (LMC) to take over the management and operation of the Paarl Waste Water Treatment Facility (WWTF) for the purposes of supplying water to the Waterberg Coal Projects (WCP), ASX-listed Waterberg Coal Company said in a statement on Monday.

In its September 2014 quarterly activities report, the company advised that the WCP JV partners had engaged with LMC in respect of taking over the management and operation responsibility for the Paarl WWTF so as to ensure the long term availability of treated water for use in the proposed project development and operations.

The agreement entitles, but does not oblige, Sekoko, on behalf of the WCP, to access treated water for 30 years with an option to renew the agreement for a further term.

The Paarl WWTF has a treatment capacity of 10 million litres per day, or 3.64 million cubic metres per annum and will provide the WCP with sufficient water not only for its proposed export project development, but also for Stage 1 of its proposed independent power producer development, which is currently under technical and economic assessment.

Securing this water agreement is a very significant and necessary step towards the development of the WCP. The joint venture partners are targeting a project start up for the export project towards the end of the fourth quarter of 2015.

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