Name and Location
Waterberg coal 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 WCJVP entered into with Eskom in March 2012.

Value
Not stated.

Duration
Not stated.

Latest Developments
Ardbel, an ELB Engineering Services and DRA Group joint venture has been given approval to start the preliminary design and basic engineering works of the Waterberg coal project.

A letter of intent has also been entered into between project owners, the WCJVP and Ardbel for the development of a coal-handling facility, processing plant and associated civil works for the Limpopo-based project.

Local and international process engineering firms are engaged in the design, manufacture, supply, delivery, assembly, installation and commissioning of the 22-million-tonne-a-year coal-handling and preparation plant in a phased approach within an engineering, procurement and construction framework.

In a separate statement, the WCC, which is the managing partner of the WCPJV, has indicated that a definitive feasibility study for the project has been completed and that the JV is engaging with the debt and equity markets to secure funding for the project.

“Due diligence for this purpose, currently being undertaken by the Banking Group, is at an advanced stage,” the WCC states.

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.