Name of the Project
Riversdale anthracite colliery (RAC) development project.

Location
The project is located near Vryheid, in KwaZulu-Natal, South Africa.

Client
Acacia Coal.

Project Description
A prefeasibility study (PFS) completed on RAC has proven positive, exhibiting a premium-quality product, with low costs and strong margins.

The project has total resources, reported in accordance with the Joint Ore Reserves Committee 2012 code, of 9.52 million tonnes, of which 86% fall into the measured and indicated category.

The project is expected to deliver an average saleable coal production of 438 000 t/y over an initial eight-year mine life.

Mining will be based on an outsourced operational model.

The PFS has found that RAC coal is ideal for use in South Africa’s ferrochrome industry, which is struggling to source sufficient quantities of low phosphorus and low sulphur anthracite.

There is also encouraging potential to increase the mine life with further drilling of the Gus and Alfred Seams.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $73-million, and an internal rate of return of 53%, with a payback of 2.7 years.

Value
Forecast initial development capital has been estimated at A$24-million, owing to an outsourced operating model, with $7.85-million in sustaining capital.

Duration
Not stated.

Latest Developments
Acacia mining submitted the integrated water-use licence application in May and, based on discussions to date, is expected to receive this final outstanding regulatory approval in mid-2018.

The company will start with a feasibility study in July, the key components of which will comprise additional drilling, further and detailed design work, and the finalisation of contracts for key equipment and services, binding off-take agreements and project finance.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Acacia Mining, tel +44 207 129 7150 or email ir@acaciamining.com.