Name and Location
Makhado coking coal project, Limpopo, South Africa.

Client
Coal of Africa Limited (CoAL).

Project Description
The Makhado project is CoAL’s anchor project in the Soutpansberg coalfield, in Limpopo, where the company has access to a significant hard coking and thermal coal resource, with the gross tonnes in situ estimated at eight-billion tonnes.

A definitive feasibility has defined a 16-year life-of-mine, with mining expected to take place at an average rate of 12.6-million tonnes a year of run-of-mine to produce 2.3-million tonnes a year of hard coking coal and 3.2-million tonnes a year of thermal coal at a steady state.

The resource will be mined on an opencast basis, with the potential to expand underground.

The project has been divided into three mining areas for technical, logistical and practical reasons: East pit, Central pit and West pit.

Mining will be staggered, starting with the East pit, followed by the Central and West pits. The development of the East pit will include plant and infrastructure components, which will cater for the production volumes from the other pits.

The processing plant will comprise:
• a double-stage dense-medium separation plant for the destoning and beneficiation of the hard coking coal and the thermal product, achieved through a high-gravity wash, followed by a low-gravity wash for the coarse-size fraction of –50+1mm;
• a fines (–1+0.15mm) circuit, encompassing a low-gravity reflux classifier process for the production of the coking coal and a high-gravity reflux classifier for the production of the thermal product; and
• an ultrafines (–0.15mm) circuit of Jameson column flotation cells for the production of the coking coal and a potential thermal product.

Value
Capital expenditure is pegged at R3.96-billion, including contingency.

Duration
Not stated

Latest Developments
CoAL has embarked on the financing stage of the project and has started discussions with potential black economic-empowerment groups, including communities and strategic partners.

The company is working towards a structure which will include debt funding, whereby CoAL will retain majority ownership, with the incoming partner’s contribution meeting CoAL’s full equity requirement for the project.

CoAL’s regulatory approval and funding requirements are targeted for completion by the first half of 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
CoAL, tel +61 8 9316 9100, fax +61 8 9315 5475 or email perth@coal0fafrica.com.
CoAL investor relations, Sakhile Ndolvu, tel + 27 11 575 6858.