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Mmamabula West project update

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World Coal,

African Energy Resources Ltd (African Energy) has provided an update on the progress at the Mmamabula West integrated power project.

This project is being developed by the company’s wholly owned subsidiary, Phokoje Power (Pty) Ltd, for submission into South Africa’s 3750 MW coal-fired, base-load independent power producer procurement programme.


Infill drilling programme to upgrade resource


The Mmamabula West coal deposit contains 892 million t of indicated resource and 1.54 billion t of inferred tesource in two ~5m thick coal seams (K-Seam and the deeper A-Seam).

African Energy has committed to an infill core drilling programme designed to upgrade a portion of the currently defined indicated resource to a measured resource.

Eight infill holes for a total of approximately 1200 m will be drilled in the shallowest part of the coal deposit around the area of the proposed decline from the prefeasibility study. The drilling programme is expected to commence within two weeks, and is due for completion in December.

This measured resource will form the initial basis for subsequent bankable feasibility studies on coal mining and coal processing for a mine supplying fuel for up to 600 MW of power generation.


Fuel specification development programme


Analysis of large diameter coal core has been completed and is being used to develop a preliminary fuel specification for each of the K-Seam and A-Seam, and for a blended fuel from both seams. The company anticipates that provisional fuel specifications will be available before the end of December.

The fuel specifications derived from each coal seam will assist with the development of the design of the power plant, particularly the selection of boiler technology and sizing of ash handling systems. The fuel specifications will also be used in subsequent bankable feasibility studies to help optimise mining schedules and coal processing flowsheets to meet the fuel requirements of a 600 MW power plant.


Environment and land


African Energy’s environmental consultants have completed the draft amendment of the Environmental and Social Impact Statement and the Environmental and Social Management Plan to include up to 600 MW of power generation in addition to underground coal mining and surface coal processing. The company is currently reviewing these documents and expects that they will be finalised for submission to the Department of Environmental Affairs in December.

An application for Land Rights covering approximately 64 km2 in the southeast corner of the Project has been submitted to the Lentsweletau Sub Land Board. In addition to the land rights area, the company has also applied for 150 m wide servitudes between the project and Isang Sub-Station and between the project and the A1 highway.

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