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Continental Coal relinquishes Botswana licence

18th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Southern Africa-focused Continental Coal on Monday announced that it would relinquish one of its prospecting licences to the Ministry of Minerals, Energy and Water Resources in Botswana, in an effort to cut back on costs.

The company stated that an assessment of the prospecting licence revealed low exploration prospectivity for the area, adding that future exploration expenditure would be required.

The prospecting licence also offered little opportunity for farm-out or divestment opportunities, resulting in Continental relinquishing the asset to the Botswana government.

CEO Don Turvey said the company was reviewing opportunities to further minimise future spend, while still extracting value from its remaining prospecting licences in Botswana.

Meanwhile, production at the recently opened Penumbra underground mine, in South Africa, reached 51 000 t during October.

Turvey reported that the availability of continuous miners during November had a negative impact on the month-to-date production. He said that the operations team was addressing the matter.

A conventional drill and blast section has been established and production from this section was expected to ramp up over the next few months.

Further, the Vlakvarkfontein mine, also in South Africa, was continuing to exceed expected production targets, delivering 127 400 t run-of-mine coal during October.

Edited by Creamer Media Reporter

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