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Wescoal secures water-use licence for Elandspruit mine

7th April 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Coal junior Wescoal has secured a water-use licence for its Elandspruit mine, near Middelburg, in Mpumalanga.

The approval of the licence enabled the company to start work on the 40.17-million-ton project.

Wescoal last year said it would need to invest R170-million in the project, R60-million of which would be funded through internal cash flows and the balance through an Investec facility. In the interim, the company had secured R200-million in funding from Investec Bank.

The financing facility included a R180-million five-year term loan and a R20-million five-year working capital facility.

The company also operated the Khanyisa and Intibane collieries, near Ogies, in Mpumalanga.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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