Hodges in offtake talks for Morupule South
PERTH (miningweekly.com) – Coal developer Hodges Resources was looking to secure offtake partners for its flagship Morupule South project, in Botswana, MD Mark Major told Mining Weekly Online.
Speaking on the sidelines of the Africa Downunder conference, Major said that the company was looking to secure an offtake of between one-million to two-million tonnes a year.
“If that offtake is a run-of-mine offtake, it means we can develop a four-million-tonne-a-year operation, and wash some of the product. It would allow us to sell a washed product to someone else while the run-of-mine product is sold through the offtake.”
Major noted that securing an offtake for the Morupule South project was a key milestone, as further development of the project depended on it.
“After completing our scoping study, we now understand how valuable the mine is. So the next step is to find someone to buy the product, which would then allow us to proceed towards a mining licence and rail allocation,” he said.
The scoping study, completed in February this year, considered an initial start-up development of between two- and three-million tonnes a year, ramping up to five-million tonnes a year within three to five years.
Capital cost estimates for developing a 1.5-million-ton-a-year operation had been estimated at A$55.76-million for a contractor model, and A$111.1-million for an owner-operator model.
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