Exploration and mining project development company Sitatunga Resources, which has bought Wescoal’s coal assets near Newcastle, KwaZulu-Natal, believes its investment in the Braakfontein Colliery will create much-needed jobs in the area.
Braakfontein Colliery is an advanced-stage exploration property situated on the Klip River Coalfield, which is located about 10 km from the town of Newcastle.
The acquired assets include an approved mining right and overlaying surface rights.
The area offers potential for coal extraction through opencast mining, as well as underground mining at a later stage.
“We are looking forward to start operations as soon as everything has been cleared by regulators,” Sitatunga MD Arne Hansen said on Wednesday.
Sitatunga’s largest shareholder, Menar Holding, wishes to build on its existing businesses including Canyon Coal and Zululand Anthracite Colliery, through Sitatunga.