Name and Location
Moabsvelden thermal coal project, Mpumalanga, South Africa.

Client
Xceed Resources.

Project Description
The Moabsvelden project comprises measured and indicated resources of 66.14-million tonnes, which include reserves of 43.87-million tonnes.

The plan is to exploit the Moabsvelden reserve using a contractor opencast truck-and-shovel operation at a production rate of 250 000 run-of-mine tonnes a month on a six-day double-shift mining cycle.

Coal produced from the pit will be transported on a 5.5° access ramp from the pit to the coal beneficiation plant and main infrastructure facility on the southern side of the property.

On average, 487 000 m³ of overburden material a month needs to be removed to expose 250 000 t/m of coal at an average strip ratio of 1.95:1.

Once the production pit is in steady-state mode, a conventional rollover mining method will be used, by which the excavated hard and soft overburden material will be replaced in the void after the coal layers have been extracted.

The wash plant is designed to produce a full range of primary products, including nuts (26 mm × 50 mm), peas (13 mm × 25 mm), grains (4 mm × 12 mm), duff (2 mm × 3 mm) and spiral (<1 mm). In addition, the plant will produce a middling (0 mm × 50 mm) product.

It is planned to beneficiate the coal using a 450 t/h double-stage dense-medium cyclone plant, which will either be owned and operated by Xceed or will be supplied and managed under a build, own, operate and manage proposal.

Production of about 666 000 t of export-quality coal and 890 000 t of domestic power-station-quality coal is planned.

Value
Upfront capital costs are estimated at R266-million.

Duration
The ramp-up period to reach full production is expected to be about nine months, including three months for development of the boxcut and ramp.

Latest Developments
The Mpumalanga provincial government has approved the development of the Moabsvelden project.

The environmental approval is the second of three major licences required to develop the project. The first was the mining right, which has already been received.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Xceed Resources, tel +27 13 282 0084 or fax +27 13 282 9320.