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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (31397)	1/19/2009 9:09:50 PM
From: LoneClone	Read Replies (1) \| Respond to of 196234

CoAL to start Mooiplaats underground production at end Q1 miningweekly.com By: Chanel Pringle Published on 19th January 2009 JOHANNESBURG (miningweekly.com) – Production from the underground mining portals at the Mooiplaats thermal coal project, in the Ermelo coalfield, would start by the end of this year's first quarter, coal development company Coal of Africa Limited (CoAL) said on Monday. Reporting on the company's progress in the quarter ended December 31, 2008, MD Simon Farrell told shareholders that the development of all the company's coal projects remained on schedule. "I am pleased to announce that coal was extracted from the Mooiplaats thermal coal project during the quarter, with further significant development of the project due to take place in the next quarter," he stated. The ASX-, Aim- and JSE-listed company reported that the development of the boxcut and the surface infrastructure at the project was progressing on schedule, with the washing plant to be commissioned in March. The first coal sales from the project would start in the second quarter of the year. Discussions regarding the long-term offtake agreements for the export coal from the project were continuing. CoAL also expected to conclude an agreement with power utility Eskom for the sale of lower quality thermal coal by the second quarter. Meanwhile, Farrell emphasised that the company remained "well placed" to bring the Mooiplaats project, the Vele coking coal project and the Makhado coking coal project into production within the next two years, despite the challenges posed by the current economic turmoil. He noted that the company's cash position and absence of debt would ensure it was able to do this. Mining at the Vele project, in Limpopo province, was expected to start by the second half of the year, subject to the granting of new-order mining rights by the Department of Minerals and Energy (DME). An ongoing drilling programme was expected to better define the site of the proposed bulk sample boxcut at the project, with 12 drilling holes to be completed this year. Further, CoAL stated that the preliminary mine production schedule for the project had been revised during the quarter to include both underground and opencast sections. The revised schedule potentially could deliver improved coking coal yields at lower cost and extend the life-of-mine beyond 2040, reported the company. Meanwhile, the results of a large-diameter drilling (LDD) programme at the Makhado project, which would be commissioned about 12 months after the Vele project, would be available in the second quarter of the year. By December, 12 holes out of the 20-hole LDD programme had been drilled. Further, CoAL said that the new-order mining rights application for the project, situated in Limpopo province, was nearing completion, with progress also being made on the various environmental studies. The company also had submitted a mining rights application to the DME for its Holfontein project, situated in the Witbank coalfield, east of Johannesburg. This follows the termination of a sale agreement between CoAL and Australian minerals exploration and development company, Lachlan Star, which wanted to acquire 100% of the project, but could not get shareholder approval. CoAL expected to produce about 400 000 t/y of soft coking coal from the 5 seam at the project, and about 800 000 t/y of thermal coal from the 4 seam.