Universal Coal Pic announced that the Department of Mineral Resources has granted the Eloff Mining Company (Pty) Ltd the mining right and environmental authorisation over the Eloff project. The Eloff Mining Company hosts the Eloff coal project and Universal Coal effectively holds 49% of Eloff.
The Eloff mining right covers an area of 8168 ha, in addition to surface rights over 6146.7 ha of the project area. These surface rights cover all the areas identified for the planned expansion of Universal's existing Kangala colliery, along with the identified western Eloff area.
Importantly, the Eloff acquisition provides Universal with the opportunity to consolidate the contiguous resource base of the eastern portion of the Eloff project with Kangala, and provides further optionality in the extension of Kangala's life of mine. The eastern portion of the Eloff project is a direct extension of Kangala's current pit and will require limited future development capital resulting in significant cost saving in monetising Eloff. A Section 102 application can allow for the contiguous eastern portion to be included under the Kangala mining right.
In addition, the western portion of the Eloff portion can potentially be developed into Universal's fifth standalone mine.
Read the article online at: https://www.worldcoal.com/mining/27122018/mining-right-granted-for-eloff-coal-project/
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