Coking coal bonanza, gold miner buys coal, coal funding quest
The Makhado project in South Africa’s Limpopo province has the potential to be a world-class hard coking coal product, independent coal consultant Wood Mackenzie has confirmed. Read on page 11 of this edition of Mining Weekly of the potential of Makhado to produce two-million tons of hard coking coal and three-million tons of thermal coal a year. Beijing Haohua Energy of China has bolstered the financial structure of the South African-focused Coal of Africa’s (CoAL’s), which owns the Makhado asset. CoAL is now intent on becoming a coking coal company. Read on page 10 of this edition of Mining Weekly of CoAL going all out to dispose of its noncore thermal coal mines in Mpumalanga, which it sees as diverting attention away from its higher-value coking coal projects, including the Vele coking coal project, also in Limpopo province.
Watch video in which CoAL CEO John Wallington outlines the company’s plans to break into cash generation below.
Gold miner Village Main Reef has entered into a private placement agreement with Aim- and ASX-listed thermal coal company Continental Coal, which will see Village subscribing for 100-million ordinary shares in Continental for A$0.08 a share. Read on page 13 of this edition of Mining Weekly of Village also having the option to acquire further Continental shares on the market at a price of up to A$0.10 a share, thus increasing its shareholding to 19.9%. Continental is seen by Village as being at an "inflection point" in terms of its development, in that it has concluded offtake and funding agreements for its export thermal coal production, signed a joint development agreement with Korea Resources Corporation and secured debt from Absa Capital to fund its growth.
ASX- and JSE-listed Resource Generation (Resgen) has announced that it is mulling alternative funding for the construction of its Boikarabelo coal mine, in South Africa's Limpopo province. Read on page 10 of this edition of Mining Weekly of the capital expenditure required being estimated at A$530-million. Resgen reports that regulatory approvals have been received, the land for the mine and rail link acquired, contracts for rail haulage and port access secured, and contracts with Indian customers and global trader Noble Group signed. Construction of site infrastructure, roadworks and water and power connections have begun at Boikarabelo, the first phase of which is expected to deliver six-million tons of product coal a year.