Matebeleland coal exploration program underway, including drilling, geophysics and geochemistry. The advantage with the coal project is that unlike big coal operations, the costs of acquiring and mining are not as expensive as the counterpart mines around the world should one consider a one on one cost comparison including EIAs. There is advantage of the strip ratio as the material of coking and thermal coal is close to surface so the investment return and income is faster.
The +6,000 hectares exclusive prospecting license first five years are for exploration after that a bill of quantity will determine the life span of the mine when the resource would have been exhausted.
Completion of the exploration will bring the resource to JORC compliant. Currently the resource has proven resource of +/- 400 million tons 60% coking and 40% thermal. The resource is a brownfield and mostly will be open cast mining for the greater part of mining period and its on 1:1 strip ratio 5m deep and 5m + thickness.
The new coal plant will be state of the art by way of integrated gasification combined cycle (IGCC). Coal gasification improves efficent use, produces synthetic natural gas to make steam and captures pollutant emissions, such as sulphur. This state of the art technology also produces clean, cost effective, reliable electrons by the megawatts.
Volumes of adjacent reserves possibly +/- 5 billion metric tons after diamond drilling to 200m.
Overall CAPEX of the project. Distribution by years and types will be US$100 million 60% Capex and 40% subscription.
Current status of the project brownfield 29 boreholes done Aeromag and induced polarisation done.
Potential clients in the region are the Republic of South Africa 10km away and others. The nearest rail road is 108km from mine, river 6km and Maputo, Mozambique port 430km. Electricity is located 40km away and a rail link is required to the boarder 90km.
Mining companies in the region include Hwange coal mine, Makomo Resources and Tuli coal mine in Zimbabwe and Anglo American Group member Kumba iron ore in the proximity on Republic of South Africa side.
Plans for mine once operational are to recover 100% of the wastewater for drinking through a reverse-osmosis plant.