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CoAL appoints DRA to undertake Makhado optimisation, FEED package

CoAL CEO David Brown

CoAL CEO David Brown

Photo by Duane Daws

18th January 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Triple-listed Coal of Africa Limited (CoAL) has appointed engineer and project delivery group DRA Projects to carry out the optimisation study and front-end engineering and design (FEED) package for its Makhado coal project, which is scheduled to start production in 2019.

The mine, in Limpopo, would unearth hard coking and thermal coal for export and domestic consumption. Initially, the operation would be an opencast mine, with potential for expansion to an underground operation in future years.

DRA was previously involved in the preparation of a definitive feasibility study for the Makhado coal processing and handling facilities. This work was completed in early 2013.

The scope of the optimisation and FEED assignment expanded DRA’s earlier role to include the infrastructure components of the project, as well as the integration of the work of a number of specialist consultants.

“It is especially pleasing to be awarded this next phase of the investigation and development of the project. Our early interaction with CoAL began in 2010 with initial studies and the new award is testament to the sound relationship established between our two organisations and our respective project teams,” DRA CEO Paul Thomson said.

He added that a key requirement of the current phase would be the identification of appropriate cost reduction opportunities to optimise the economics of the project in the current challenging market.

CoAL’s current plan was for work on the site to start during the second semester of this year, followed by a 26-month build programme.

“This is an exciting yet crucial phase of the project development and being associated with DRA during this period will ensure a successful start to the construction of Makhado,” CoAL CEO David Brown added.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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