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JOHANNESBURG (miningweekly.com) - South Africa's Department of Mineral Resources (DMR) has granted junior miner Coal of Africa Limited (CoAL) approval to take a bulk sample from its Makhado coking coal project.
The Aim-, ASX- and JSE-listed CoAL holds a 100% interest in the Makhado project, which is expected to deliver five-million tons a year of hard coking coal product at full output.
The sampling process would involve excavating an opencast pit on the Farm Tanga. About 411 000 m3 of overburden would be removed to expose 19 100 t of run-of-mine coal.
The coal would then be transported to Tshikondeni Colliery where it would be beneficiated to a 12% ash coking coal. "This is expected to provide 4 400 t of product which will be sampled and analysed at CoAL's laboratory in Polokwane," the company said in a statement.
Following the processing and laboratory analysis of the bulk sample, the coal would be handed to steelmaker ArcelorMittal South Africa to test in its coking ovens at Vanderbiljpark for "value in use" analysis.
The testing is necessary to finalise certain terms and conditions of the proposed off-take agreement between CoAL and the steel giant, including terms and conditions relating to pricing and volumes.
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