Name and Location
Waterberg coal joint venture project, Limpopo, South Africa.

Client
Waterberg Coal Joint Venture Partners (WCJVP), comprising Firestone Energy and Sekoko Resources.
In October 2013, ASX-listed Waterberg Coal Company (WCC) acquired 45.88%, or 1.63-billion shares, of dual-listed Firestone Energy, resulting in WCC acquiring 32.36% of the coal producer. WWC also acquired 480-million Firestone shares from its 25%-owned subsidiary Sekoko Resources, separately from the takeover offer, representing a further 13.52% interest in Firestone.

Project Description
The project consists of eight farms, in the Waterberg coalfield, totalling 7 979 ha. The identified area over the Smitspan farm (first phase base case) indicates a mine layout covering 507 ha, extending for 3.5 km from east to west and for 1.8 km from north to south.

The project proposes the development of an opencast mining operation to produce ten-million tonnes a year of coal for Eskom for an initial term of 30 years, pursuant to the memorandum of understanding (MoU) that the JV entered into with Eskom in March 2012.

Value
Not stated.

Duration
Not stated.

Latest Developments
The WCJVP has delivered a feasibility study on the development of a ten-million-tonne-a year opencast coal operation, in Limpopo, to prospective offtake partner Eskom.

This follows the cementing of an MoU between the Waterberg joint venture (JV) and Eskom for a proposed coal supply agreement (CSA), which will result in the envisaged mining operation delivering product to the coal-dependent parastatal for an initial 30-year term.

The coal project boasts 3.88-billion tonnes of coal of which, 2.07-billion tonnes are classified under the measured category.

While the details of the feasibility study remain confidential, ASX-listed WCC director Stephen Miller says the JV partners are updating the study, which will be released as a full bankable feasibility study on completion.

Eskom has taken delivery of a 200 000 t bulk sample product to conduct a burn test to determine the project’s coal quality.

At Eskom’s request, the feasibility study has factored in the construction of a conventional coal-density separation beneficiation plant capable of beneficiating up to 23.5-million tonnes of raw run-of-mine coal and designed to achieve a raw coal feed rate of 22-million tonnes a year, with plant use of 6 600 hours a year.

“Based on the latest mine schedule requirements, at peak production, four coal preparation modules are required, each rated at 825 t/h,” says Miller. This will include high-gravity separation using dense-media cyclones.

The plant will also consist of spirals for coal beneficiation, a filter plant to dewater thickener underflow and a water clarification and reticulation system.

Ultrafine coal will be dewatered in a tailings thickener, while small and fine coal will be dewatered using vibrating basket centrifuges.

Meanwhile, discussions between the WCJVP and Eskom regarding the terms of the CSA are well advanced.

The WCJVP have also entered into a letter of intent with Ardbel – a JV between ELB Engineering Services and DRA Group – as the preferred engineering, procurement and construction contractor on the project.

Key Contracts and Suppliers
SRK Consulting (feasibility study) and Coffey Mining (geotechnical investigation).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Waterberg Coal Company, tel +61 8 9200 4243, fax +61 8 9200 4469 or email info@waterbergcoal.com.au.
SRK Consulting, tel +27 11 441 1111, fax +27 11 880 8086 or email johannesburg@srk.co.za.
Coffey Mining, tel +27 11 679 3331, fax +27 11 679 3272 or email Coffey.Africa@coffey.com.