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ZYL shifts focus to mineable assets as it plots future

20th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – South Africa-focused coal explorer and developer ZYL said on Monday it would launch a review of all its assets as it moved to progress to a company with operational mines.

Nonexecutive chairperson Yuzheng Xie told shareholders on Monday that while ZYL had almost exclusively focused its energy on portfolio resource aggregation and feasibility studies targeted at niche metallurgical coals, the review would determine the appropriateness of the current assets for operational purposes.

“In my opinion, the company has more than enough high-quality assets to be subjected to this evaluation process in order to support the mining roadmap. This process will, however, inevitably result in a reduction in the company’s overall resource base; but a significantly more focused quality mineable reserve base that will meet the company’s new strategic intent of building a sustainable long-term mining operation will be the end result.”

Yuzheng noted that the purpose of the review was to rule out assets that were marginal, high risk, or which required considerable additional exploration in order to make a determination on the quality of the asset.

The asset review was also aimed at refocusing the company on only the high-quality mineable assets that could, time-wise, be synergistically integrated into a staged mining roadmap of at least 15 years.

Furthermore, the review would also ensure that the company had meaningful investments in these assets, to support the effort required to bring the assets into sustainable production.

Meanwhile, ZYL also on Monday announced that it was granted a mining right over its Kangwane South project, which is held by the 70%-owned Altius Trading.

The Kangwane South project has a Joint Ore Reserves Committee-compliant resource of 99.7-million tons, of which 73.9-million tons are classified as indicated and 25.8-million tons as inferred.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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