The Department of Water and Sanitation (DWS) has granted a 15-year water-use licence (WUL) to coal miner Zinoju – which is 70% owned by TSX- and JSE-listed Buffalo Coal – for its Balgray refurbishment project at the Aviemore anthracite coal mine near Dundee, in KwaZulu-Natal.

The WUL, which was issued on February 13, remains subject to appeals for 30 days under the National Water Act.

“Following the granting of this WUL, the company has now secured all of the regulatory authorisations required for the development of Balgray. [We are] currently engaging various parties to secure the required funding for the construction of Balgray,” Buffalo CEO Emma Oosthuizen said on February 15.

Zinoju holds the Aviemore anthracite mine and Magdalena bituminous mine – also in KwaZulu-Natal. A 30% interest in Zinoju Coal is held by black economic empowerment partner Nulane Investments.

Mining Weekly reported in August last year that Zinoju planned to carry out refurbishments around the Aviemore mine to establish another underground coal mine – Balgray – along the Gus Coal Seam.

Buffalo said at the time that the seam had an estimated anthracite coal reserve of 2.6-million tonnes and that the new mine would have a production rate of about 45 000 t/m.

“Balgray is the highest priority project in Buffalo’s current project pipeline and will extend the company’s anthracite operations by approximately seven years,” Oosthuizen said.

Without Balgray, the Aviemore resources would be depleted by midyear.

Buffalo states on its website that plans are in progress to start mining at Balgray from the fourth quarter, noting that, as the reserves of a section are depleted at Aviemore, the affected section would be moved onto Balgray, where mining will take place with two double shift sections.

Buffalo also has plans for an additional North Adit project, an additional expansion, which is expected to be commissioned about four years after mining starts at Balgray. 

According to the company’s latest tonnage declaration, the North Adit will add an additional 13 to 15 years to the life-of-mine, gradually increasing from two double shift sections in 2026 to four double shift sections in 2030. 

Buffalo says all legal and environmental requirements for the North Adit project have been approved.