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Universal Coal granted South African mining rights

World Coal,

Universal Coal has been granted mining rights for the Brakfontein coal project in South Africa. The project lies within 20 km of the company’s Kangala coal mine in the Witbank coalfield.

The South African Department of Mineral Resources owns a 50.29% stake of the project, which could become Universal Coal’s third mine.

In a press release, Universal Coal said that, now that the mining right has been granted and authorisation has been secured from the National Environmental Management Act, the project only requires an Integrated Water Use license and a Waste license before development activities can begin.

CEO Tony Weber said his mining company was “delighted to have taken another key step in the development of Brakfontein”.

A JORC compliant thermal coal resource of 87.6 million t has been attributed to Brakfonetin. 70.5 million t of this resource lies within the measured category.

A feasibility study is being undertaken by Universal Coal and it should be completed by the turn of the year.

Due to the proximity of Brakfontein to Kangala, Universal Coal is evaluating the possibility of trucking coal to Kangala as an option. This could substantially reduce capital development costs and the scale of the water license required. 

Written by Sam Dodson

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