Eskom receives feasibility study for Waterberg coal project

24th February 2014 By: Natalie Greve - Creamer Media Contributing Editor Online

Eskom receives feasibility study for Waterberg coal project

JOHANNESBURG (miningweekly.com) – The Waterberg Coal Joint Venture Partners (WCJVP) have delivered a feasibility study into the development of a ten-million-tonne-a year opencast coal operation, in Limpopo, to prospective offtake partner Eskom.

This followed the cementing of a memorandum of understanding between the Waterberg joint venture (JV) and Eskom for a proposed coal supply agreement (CSA), which would see the envisaged mining operation delivering product to the coal-dependent parastatal for an initial 30-year term.

The coal project boasted 3.88-billion tonnes of coal, 2.07-billion tonnes of which fell into the measured category.

While noting that the details of the feasibility study remained confidential, ASX-listed Waterberg Coal Company (WCC) director Stephen Miller said in a statement on Monday that the JV partners were currently updating the study, which would be released as a full bankable feasibility study on completion.

Eskom had already taken delivery of 200 000 t of bulk sample product to conduct a burn test to determine the project’s coal quality.

At Eskom’s request, the feasibility study factored in the construction of a conventional coal density separation beneficiation plant capable of beneficiating up to 23.5-million tonnes of raw run-of-mine coal and was designed to achieve a raw coal feed rate of 22-million tonnes a year with plant use of 6 600 hours a year.

“Based on the latest mine schedule requirements, at peak production, four coal preparation modules are required, each rated at 825 t/h,” said Miller.

The plant would also consist of spirals for coal beneficiation, a filter plant to dewater thickener underflow and a water clarification and reticulation system.

Ultra-fine coal would be dewatered in a tailings thickener, while small and fine coal would be dewatered with vibrating basket centrifuges.

Meanwhile, Miller noted that discussions between the WCJVP and Eskom as to the terms of the CSA were well advanced.

“We are also very pleased to announce that we have entered into a letter of intent with Ardbel – a JV between ELB Engineering Services and DRA Group – as our preferred engineering, procurement and construction contractor on the project,” he said.