Name of the Project
Vele colliery expansion project.

Location
The project is located about 48 km north-west of Musina, in Limpopo, South Africa.

Client
MC Mining Limited (formerly Coal of Africa Limited).

Project Description
The Vele mine has Joint Ore Reserves Committee-compliant mineral resources estimated at 362.5-million mineable tonnes in situ and proven and probable reserves of 325.1-million tonnes.

The colliery’s coal resource allows for a life-of-mine of more than 50 years of opencast and underground mining opportunities, producing a primary product of semisoft coking coal, and thermal coal as a secondary product for the domestic market.

Coal production has been estimated at between 1.2-million tonnes a year and 1.5-million tonnes a year of the coal product specification.

A modular coal treatment plant was established during the first phase of the project.

MC Mining plans to modify and expand its Vele colliery beneficiation plant, which will enable MC Mining to optimally produce semisoft coking coal, thermal coal and sized coal simultaneously at an expected processing capacity of 2.7-million tonnes a year of run-of-mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of return
Not stated.

Value
The total capital expenditure to complete plant modification is estimated at R450-million and includes the necessary mine development and production ramp-up.

Duration
Not stated.

Latest Developments
The South African Department of Water and Sanitation has granted an integrated water-use licence for the Vele Colliery’s stream diversion and associated infrastructural activities.

This approval completes the full regulatory suite of all authorisations required for the project.

The final decision on whether to proceed with the plant modification project is expected to go before the company’s board in due course. This will include an assessment of long-term pricing and logistics considerations.

Key Contracts and Suppliers
Sedgman South Africa (front-end engineering and design).

On Budget and on Time?
Not started.

Contact Details for Project Information
MC Mining corporate affairs, Florence Duval, tel +27 10 003 8000 or email Florence.duval@coalofafrica.com.