CAPE TOWN (miningweekly.com) – The Japanese may have the key to the unlocking of South Africa’s Springbok Flats where uranium contamination has inhibited coal mining for decades.

XMP Consulting geologist Gerhard Esterhuizen has told the IHS Energy South African Coal Exports Conference 2015 that the Japanese claim to have a process of successfully removing the uranium from coal, which, if true, could be applied in the Springbok Flats, which straddles the Limpopo,  Gauteng and North West provinces.

In an address on the potential of the Limpopo coalfields, Esterhuizen also outlined at the conference attended by Mining Weekly Online how the Soutpansberg coalfield offered South Africa the opportunity to substitute the import of coking coal, which he said was present in the area stretching to the Zimbabwe border.

Ariy Consulting principal Henrique Pinheiro, who addressed the conference on coal mining in Mozambique, cautioned that logistics costs were critical to successful development  in the southern African country.

Pinheiro outlined that the 3.98-million tonnes that were exported through the port of Beira in 2013 and 4.87-million tonnes in 2014 had done so at a loss because of low yields and high logistics costs.

He doubted whether true coking coal would form more than 25% of exports from Mozambique and most would be thermal coal, which would impact on the justification of large expenditure being outlayed on logistics infrastructure.

He contended that the high prices paid for Mozambique coal assets a few years were ago were based on suspect numbers.

“It’s very difficult to do business in a country where the government cannot afford anything.

“Mozambique definitely needs affordable logistics if anything is going to happen,” Pinheiro concluded.

Marula Mines director John Maclean, who addressed the conference on coal mining in Zimbabwe, said Zimbabwe’s Wankie coal area was served by essential infrastructure and trained human resources.

However, with distance to ports considerable, exports of Zimbabwean coal outside of Africa at current prices were uneconomic.

Until coal prices rose higher, Marula’s product would be aimed at the neighbouring South African market and the copper smelting market of Central Africa.

Marula produces up to two-million tonnes of coal a year and mines coal in an area where other coal-mining companies are also active.

Lemur Resources CEO Anthony Viljoen, who spoke on the development of the company’s coal resources in Madagascar, said the Imaloto basin in the greater Sakoa coalfields had the most promising open-castable potential.

He outlined how the main seam raw coal was suitable for coal-fired power generation and later beneficiation for export.

He said Lemur was looking to set up a fluidised 45 MW power station within 10 km of the mine in an area where the demand for electricity was strong.

The 21-year life-of-mine would require an initial capital expenditure of $11.9-million.

Analytika Holdings director Alan Golding, who addressed the conference on Botswana’s coal prospects, said the country was well-placed for coal-fired power distribution with an estimated 200-billion tonnes of coal resources.

Most of the coal fields are on the eastern side of Botswana, extending into the centre, and most  coal was earmarked for the 600MW Morupule Power Station, but the coal-fired power station near Palapye, was currently not functioning.

The Morupule coal mine serving the non-functioning power station is believed, however, to have struck sales agreements to Turkey and South Africa’s Lichtenburg cement plants.

Golding reported that since the implementation of Botswana’s Coal Road Map, only two completive tenders for prospecting licences had been issued and that procedure had deteriorated and become less than transparent.

Coal figures were also 20 years out of date.

“It’s not acceptable,” he said.