Fri, 09 Mar 2012
ET reported that TATA Power, Reliance Power, ArcelorMittal, Jindal Steel and Power and Monnet Ispat & Energy are among 60 companies that face risk of cancellation of mining licenses for being slow in exploration of coal blocks.
A review committee headed by coal ministry's additional secretary Ms Zohra Chatterjee has recommended issuing 'show-cause notices' for 58 blocks asking for reasons why mining licenses should not be revoked. A coal ministry official said appropriate action would be initiated against companies that are not able to justify the delay.
The official said that "We are reviewing allotment to non-serious companies that are simply sitting on the blocks. Some allottees are yet to start any activities on the site. Some blocks are delayed due to problems in land acquisition, delayed regulatory clearances, local agitation and law and order issues.”
The companies include Hindalco Industries, TATA Sponge, Electro Steel Casting, MMTC, National Aluminium Co Ltd and power and mining utilities of Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Tamil Nadu.
Coal ministry's latest review found that only 29 of 195 allotted coal blocks have started production while progress at 90 blocks was found dissatisfactory as critical milestones like acquisition of land, forest clearances and execution of mining lease were not achieved for various reasons.
Captive mines are expected to generate just about 36 million tonnes by this fiscal against targeted 81 million tonnes, scaled down from 104 million tonnes after mid-term review by the Planning Commission.
Caution notices will be issued to about 28 companies, including National Thermal Power Corporation, Steel Authority of India, Jai Prakash Associates, Jindal Steel & Power and GVK Power, for slow progress at 32 blocks.
The committee has also advised owners of another 58 blocks to follow up aggressively with the environment ministry for securing clearances. The committee also recommended de-allocation of two lignite blocks.
The government has till date revoked mining licenses for 23 captive coal blocks that were later allotted to Coal India Ltd.
Source - Economic Times
Showing posts with label mining licence. Show all posts
Showing posts with label mining licence. Show all posts
Friday, March 9, 2012
Saturday, January 28, 2012
Vale gets license to mine high grade iron ore pit at Carajas mine
Saturday, 28 Jan 2012
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Friday, October 28, 2011
C @Limited enters agreement to acquire eight Mongolian coal licenses
Friday, 28 Oct 2011
Perth based C@ Limited will acquire eight highly prospective Mongolian coal licenses for USD 7.8 million after it signed a conditional Share Sale Agreement with Peabody Winsway Resources to acquire all of the issued capital in its subsidiary BDBL.
Importantly, the eight coal licenses cover 625 square kilometres in a major emerging coal province. The region is characterized by a number of recent major black coal discoveries on the doorstep of the expanding Chinese steel and energy markets.
A number of the licenses are close to existing producing assets and infrastructure with close proximity to major energy markets like China and Russia, which make the economics of this project very favorable.
Four of the licenses are located in the Ongi River Basin in the Ovorhangay province and four are located in the South Gobi Basin in the South Gobi province. As part of its technical due diligence on these licenses, C @ undertook an exploration drilling program which intersected three coal seams on the Ovorhangay licenses. Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties both near surface and at moderate depth likely to be enhanced by washing.
All of the licenses have had limited exploration but offer considerable potential. C @ will now undertake a capital raising of up to AUD 28 million including a USD 3 million priority issue to eligible shareholders.
Upon completion of the acquisition, C @ will immediately undertakes Phase II of its exploration program which will include geophysics and a substantial drilling program. Priority will be given to the Teeg licence located in Ovorhangay which intersected two significant coal seams during the company Phase I exploration program.
C @ will undertake a geophysical survey to identify the potential black coal extensions concealed on the licence to support key targets of the drilling program.
(sourced from ProactiveInvestors)
Perth based C@ Limited will acquire eight highly prospective Mongolian coal licenses for USD 7.8 million after it signed a conditional Share Sale Agreement with Peabody Winsway Resources to acquire all of the issued capital in its subsidiary BDBL.
Importantly, the eight coal licenses cover 625 square kilometres in a major emerging coal province. The region is characterized by a number of recent major black coal discoveries on the doorstep of the expanding Chinese steel and energy markets.
A number of the licenses are close to existing producing assets and infrastructure with close proximity to major energy markets like China and Russia, which make the economics of this project very favorable.
Four of the licenses are located in the Ongi River Basin in the Ovorhangay province and four are located in the South Gobi Basin in the South Gobi province. As part of its technical due diligence on these licenses, C @ undertook an exploration drilling program which intersected three coal seams on the Ovorhangay licenses. Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties both near surface and at moderate depth likely to be enhanced by washing.
All of the licenses have had limited exploration but offer considerable potential. C @ will now undertake a capital raising of up to AUD 28 million including a USD 3 million priority issue to eligible shareholders.
Upon completion of the acquisition, C @ will immediately undertakes Phase II of its exploration program which will include geophysics and a substantial drilling program. Priority will be given to the Teeg licence located in Ovorhangay which intersected two significant coal seams during the company Phase I exploration program.
C @ will undertake a geophysical survey to identify the potential black coal extensions concealed on the licence to support key targets of the drilling program.
(sourced from ProactiveInvestors)
Saturday, October 1, 2011
Mozambican suspends granting of coal mining licenses in Tete Province
Saturday, 01 Oct 2011
The Mozambican government has decided to suspend the issue of new licenses for coal mining in Tete province.
Mr Afonso Abica inspector of the Mining Resources Ministry said that the suspension, which includes prospecting and surveying licenses, mining certificates and mining concessions aims to assess to what extent companies that already hold licenses are complying with the contracts signed with the government.
On the sidelines of a seminar on reviewing the Mining Law, Mr Mabica said that the decision to suspend the issuing of new mining licenses was only related to coal mining in Tete province and that other mining activities would not be affected.
The inspector also said that companies who were not complying with what had been stipulated in their contracts would be penalised and, in extreme cases, could have their licenses revoked.
He said “By revoking the mining licenses we want areas that are currently occupied without being explored can be handed over to other people who are interested and available to work on them.”
Over the last two years the government has granted over 112 licenses to 45 national and foreign companies linked to coal mining in Tete province, which is thought to have the largest coal reserves in the world.
It is estimated that within five years over 100 million tonnes of coal per year will be mined from the Zambezi coal basin, making Mozambique one of the world’s largest coal exporters. However, despite the huge potential, few companies are moving to develop their concessions.
(Sourced from macauhub)
The Mozambican government has decided to suspend the issue of new licenses for coal mining in Tete province.
Mr Afonso Abica inspector of the Mining Resources Ministry said that the suspension, which includes prospecting and surveying licenses, mining certificates and mining concessions aims to assess to what extent companies that already hold licenses are complying with the contracts signed with the government.
On the sidelines of a seminar on reviewing the Mining Law, Mr Mabica said that the decision to suspend the issuing of new mining licenses was only related to coal mining in Tete province and that other mining activities would not be affected.
The inspector also said that companies who were not complying with what had been stipulated in their contracts would be penalised and, in extreme cases, could have their licenses revoked.
He said “By revoking the mining licenses we want areas that are currently occupied without being explored can be handed over to other people who are interested and available to work on them.”
Over the last two years the government has granted over 112 licenses to 45 national and foreign companies linked to coal mining in Tete province, which is thought to have the largest coal reserves in the world.
It is estimated that within five years over 100 million tonnes of coal per year will be mined from the Zambezi coal basin, making Mozambique one of the world’s largest coal exporters. However, despite the huge potential, few companies are moving to develop their concessions.
(Sourced from macauhub)
Thursday, September 1, 2011
New mining licenses to be granted with attached conditions in SA
Thursday, 01 Sep 2011
It is reported that mining licenses will in future be granted with attached conditions, to ensure a supply of raw material for local industries seeking to further refine, or beneficiate, the extracted minerals.
Briefing members of Parliament's economic development select committee on government's beneficiation strategy, mineral resources chief director Mr Siyabonga Ndabezitha said there was a need to do things differently.
He added that "In the past, when we issued mining rights and licenses, we did not attach certain conditions, like saying a certain percentage of your production must be available for local beneficiation. We just issued rights, and mining companies would mine and sign agreements with their customers because we did not put any restrictions. But now we have realized that maybe we need to do things differently, and make sure that in all the new licenses that we'll be issuing, there would be certain conditions, which would make it possible for new entrants to have access to the required raw materials."
Cabinet approved the draft beneficiation strategy in June this year. The department is now developing plans for two of five so called pilot commodity value chains, which will go back to Cabinet in October 2011.
The first of these, which focuses on the iron and steel industry, has been drafted; the second, which looks at energy commodities such as coal, uranium and thorium, is still being worked out.
The other three pilots involve the production of catalytic converters; jewellery fabrication, including gold, platinum and diamonds; and, titanium metal and pigment production.
The development of a beneficiation strategy for South Africa comes almost 17 years after the 1994 RDP white paper that called for increased levels of beneficiation, and pointed out at the time that this would increase employment.
According to the document, employment] could be much higher if our raw materials were processed into intermediate and finished products before export.
Mr Ndabezitha noted that in 1994, the mining and mineral sector contributed three quarters of the country's exports, and employed 750,000 people. He added that "Now, in 2011, the situation hasn't changed much; the sector now accounts for 60% of exports, and employs 500,000 people."
He told the committee there were certain constraints hampering beneficiation of minerals in South Africa.
Among these was limited access to raw materials by new entrants to the market. However, the Mineral and Petroleum Resources Development Act was currently being amended to strengthen beneficiation provision and allow new entrants to operate.
Another constraint was a shortage of critical infrastructure, affecting access to water, power and rail links, among others. Further constraints included a skills shortage, and access to international markets.
Mr Ndabezitha said the beneficiation strategy sought to address these constraints by providing a framework to allow specific interventions in the different value chains identified by his department.
sourced Miningmx
It is reported that mining licenses will in future be granted with attached conditions, to ensure a supply of raw material for local industries seeking to further refine, or beneficiate, the extracted minerals.
Briefing members of Parliament's economic development select committee on government's beneficiation strategy, mineral resources chief director Mr Siyabonga Ndabezitha said there was a need to do things differently.
He added that "In the past, when we issued mining rights and licenses, we did not attach certain conditions, like saying a certain percentage of your production must be available for local beneficiation. We just issued rights, and mining companies would mine and sign agreements with their customers because we did not put any restrictions. But now we have realized that maybe we need to do things differently, and make sure that in all the new licenses that we'll be issuing, there would be certain conditions, which would make it possible for new entrants to have access to the required raw materials."
Cabinet approved the draft beneficiation strategy in June this year. The department is now developing plans for two of five so called pilot commodity value chains, which will go back to Cabinet in October 2011.
The first of these, which focuses on the iron and steel industry, has been drafted; the second, which looks at energy commodities such as coal, uranium and thorium, is still being worked out.
The other three pilots involve the production of catalytic converters; jewellery fabrication, including gold, platinum and diamonds; and, titanium metal and pigment production.
The development of a beneficiation strategy for South Africa comes almost 17 years after the 1994 RDP white paper that called for increased levels of beneficiation, and pointed out at the time that this would increase employment.
According to the document, employment] could be much higher if our raw materials were processed into intermediate and finished products before export.
Mr Ndabezitha noted that in 1994, the mining and mineral sector contributed three quarters of the country's exports, and employed 750,000 people. He added that "Now, in 2011, the situation hasn't changed much; the sector now accounts for 60% of exports, and employs 500,000 people."
He told the committee there were certain constraints hampering beneficiation of minerals in South Africa.
Among these was limited access to raw materials by new entrants to the market. However, the Mineral and Petroleum Resources Development Act was currently being amended to strengthen beneficiation provision and allow new entrants to operate.
Another constraint was a shortage of critical infrastructure, affecting access to water, power and rail links, among others. Further constraints included a skills shortage, and access to international markets.
Mr Ndabezitha said the beneficiation strategy sought to address these constraints by providing a framework to allow specific interventions in the different value chains identified by his department.
sourced Miningmx
Thursday, August 25, 2011
Western Desert Resources push for Gulf iron ore mine
Thursday, 25 Aug 2011
ABC.net reported that Western Desert Resources has taken another step toward developing an iron ore mine in the Gulf country of the Northern Territory.
The company is proposing an open-cut iron ore operation in the Gulf of Carpentaria. It said that the mine could produce up to 200 million tonnes of iron ore over 40 years.
WDR has already applied to the Territory Government for a mining licence.
The plans have also been referred to the Federal Government's environment department.
The company said that the mine will likely have an impact on national heritage areas like the proposed Limmen National Park. The mine will fall entirely within the proposed park, which has been gazetted since 1991.
WDR said that wetlands of national significance will also be affected, including tidal mudflats and estuaries associated with four rivers, the Roper, the Towns, the Limmen Bight and the Phelp.
The company wants to transport the ore to ships through a slurry pipeline.
The pipeline would extend to Maria Island, 30 kilometres from the coast, where the slurry would be loaded on to ships.
(sourced proactiveinvestors)
ABC.net reported that Western Desert Resources has taken another step toward developing an iron ore mine in the Gulf country of the Northern Territory.
The company is proposing an open-cut iron ore operation in the Gulf of Carpentaria. It said that the mine could produce up to 200 million tonnes of iron ore over 40 years.
WDR has already applied to the Territory Government for a mining licence.
The plans have also been referred to the Federal Government's environment department.
The company said that the mine will likely have an impact on national heritage areas like the proposed Limmen National Park. The mine will fall entirely within the proposed park, which has been gazetted since 1991.
WDR said that wetlands of national significance will also be affected, including tidal mudflats and estuaries associated with four rivers, the Roper, the Towns, the Limmen Bight and the Phelp.
The company wants to transport the ore to ships through a slurry pipeline.
The pipeline would extend to Maria Island, 30 kilometres from the coast, where the slurry would be loaded on to ships.
(sourced proactiveinvestors)
Friday, August 19, 2011
Nemex announces results of 17 ironstone samples from Coastal Project
Friday, 19 Aug 2011
Iron ore focused explorer Nemex Resources Limited has announced the results of 17 ironstone samples from its Coastal Project in western Guinea.
These samples were collected as part of a staged program to target a regionally extensive ironstone unit across the Nemex licence portfolio. The sample locations were selected from Landsat imagery, which has been interpreted to show the ironstone unit to be a regionally extensive geological unit that outcrops over extensive open plains or bowals as they are locally known.
These samples are from one of the three Coastal Project Licences, the 244 square kilometers Telimele licence, with samples NGX033 and NGX036 collected up to 12 kilometers away in new licence areas to the southwest and south respectively.
The results show iron grades ranging between 53% and 64% (averaging 60.7% Fe) and are consistent with the five ironstone sample results (60% to 63% Fe) that were announced to the ASX on June 6th 2011. These new sample results are considered to be representative of the ironstone unit and confirm that it is regionally significant.
Dr Peter Turner MD of Nemex said that "We are delighted with these results and Nemex has now demonstrated that this ironstone unit is not only a consistently high grade direct shipping ore iron product, but that it appears to cover a very large area. Our strategy now is two fold to explore the other 2,000 square kilometers of our licenses whilst drilling at the Telimele licence."
Nemex initially plans to dig a series of pits to determine the thickness of the ironstone at various sites across the Telimele licence area. Nemex's Rotary Air Blast and Reverse Circulation drill rig is scheduled to depart Perth in August, arriving in Guinea later in the year. Metallurgical test work is planned once the drilling is underway.
Dr Turner said that "Although we are trying to determine what type of rock this represents and the effect weathering has had on iron enrichment, we are happy that it is consistently high grade in iron, occurs at surface and that it sits close to rail and ports."
Iron ore focused explorer Nemex Resources Limited has announced the results of 17 ironstone samples from its Coastal Project in western Guinea.
These samples were collected as part of a staged program to target a regionally extensive ironstone unit across the Nemex licence portfolio. The sample locations were selected from Landsat imagery, which has been interpreted to show the ironstone unit to be a regionally extensive geological unit that outcrops over extensive open plains or bowals as they are locally known.
These samples are from one of the three Coastal Project Licences, the 244 square kilometers Telimele licence, with samples NGX033 and NGX036 collected up to 12 kilometers away in new licence areas to the southwest and south respectively.
The results show iron grades ranging between 53% and 64% (averaging 60.7% Fe) and are consistent with the five ironstone sample results (60% to 63% Fe) that were announced to the ASX on June 6th 2011. These new sample results are considered to be representative of the ironstone unit and confirm that it is regionally significant.
Dr Peter Turner MD of Nemex said that "We are delighted with these results and Nemex has now demonstrated that this ironstone unit is not only a consistently high grade direct shipping ore iron product, but that it appears to cover a very large area. Our strategy now is two fold to explore the other 2,000 square kilometers of our licenses whilst drilling at the Telimele licence."
Nemex initially plans to dig a series of pits to determine the thickness of the ironstone at various sites across the Telimele licence area. Nemex's Rotary Air Blast and Reverse Circulation drill rig is scheduled to depart Perth in August, arriving in Guinea later in the year. Metallurgical test work is planned once the drilling is underway.
Dr Turner said that "Although we are trying to determine what type of rock this represents and the effect weathering has had on iron enrichment, we are happy that it is consistently high grade in iron, occurs at surface and that it sits close to rail and ports."
Wednesday, August 17, 2011
CIL may extend CBM tender deadline
Wednesday, 17 Aug 2011
BL reported that Coal India Ltd may extend the August 17 deadline for receiving bids for extraction and commercial utilization of coal bed methane from five mining assets.
According to sources, a turf battle between the key union ministries of coal and, petroleum and natural gas has already forced the company to extend the tender deadline, twice, from June.
The tender was slated to pave way for extraction of nearly 25 billion cubic metres of CBM and ensure safe underground mining of over 100 million tonnes of medium-grade coking coal in Jharkhand. High concentration of gas has made underground mining unsafe in the identified assets.
According to sources, while the coal ministry has extended its tacit approval to CIL on the issue, the company was yet to receive any formal clarification on closure of the tender and awarding the same as per schedule.
According to the tender, issued in April, CIL invited private players to invest in extraction of gas and sell the same in the open market to ensure returns. CIL was slated to get a share of the profit from sale of gas.
The ministry of petroleum and natural gas felt that the tender was overlapping in nature with CBM Policy and, should not be awarded without the requisite approval from the upstream regulator. The coal ministry was also urged to take cabinet approval on the issue.
The coal ministry, however, felt that the ambit of the CBM Policy does not include the CIL leasehold area. Also, according to the Mining Act there was no space for a second licensee in a particular mining leasehold area. It is understood that the coal ministry was yet to submit any proposal for cabinet committee's consideration in this regard.
(Sourced from BL)
BL reported that Coal India Ltd may extend the August 17 deadline for receiving bids for extraction and commercial utilization of coal bed methane from five mining assets.
According to sources, a turf battle between the key union ministries of coal and, petroleum and natural gas has already forced the company to extend the tender deadline, twice, from June.
The tender was slated to pave way for extraction of nearly 25 billion cubic metres of CBM and ensure safe underground mining of over 100 million tonnes of medium-grade coking coal in Jharkhand. High concentration of gas has made underground mining unsafe in the identified assets.
According to sources, while the coal ministry has extended its tacit approval to CIL on the issue, the company was yet to receive any formal clarification on closure of the tender and awarding the same as per schedule.
According to the tender, issued in April, CIL invited private players to invest in extraction of gas and sell the same in the open market to ensure returns. CIL was slated to get a share of the profit from sale of gas.
The ministry of petroleum and natural gas felt that the tender was overlapping in nature with CBM Policy and, should not be awarded without the requisite approval from the upstream regulator. The coal ministry was also urged to take cabinet approval on the issue.
The coal ministry, however, felt that the ambit of the CBM Policy does not include the CIL leasehold area. Also, according to the Mining Act there was no space for a second licensee in a particular mining leasehold area. It is understood that the coal ministry was yet to submit any proposal for cabinet committee's consideration in this regard.
(Sourced from BL)
Sunday, August 14, 2011
Mining licence and lease in India under MMDR Act 1957
Sunday, 14 Aug 2011
Mr Dinsha Patel minister of state for mines informed the Lok Sabha that all mineral concessions, including Prospecting Licence and Mining Leases for minerals are required to be granted in terms of the provisions of Mines and Minerals (Development and Regulation) Act, 1957 and the Rules framed thereunder. In case of minerals in the First Scheduled to the MMDR Act, 1957, prior approval of the Central government is mandatory.
In grant of prior approval, every effort is made to ensure that the proposals for grant of mineral concessions are in accordance with the proceedings given in Act and Rules and proposals that do not confirm are rejected/returned.
All licence holders and lessees are required to comply with the conditions of the licence or lease deed, which are listed out in Rule 7 (for reconnaissance permit), Rule 14 (for prospecting licence) and Rule 27 (for mining lease) of the Mineral Concession Rules, 1960.
Since the licence or lease is granted by the state government, violations of conditions of licence or lease is monitored by State Government and data is not centrally maintained.
Mr Dinsha Patel minister of state for mines informed the Lok Sabha that all mineral concessions, including Prospecting Licence and Mining Leases for minerals are required to be granted in terms of the provisions of Mines and Minerals (Development and Regulation) Act, 1957 and the Rules framed thereunder. In case of minerals in the First Scheduled to the MMDR Act, 1957, prior approval of the Central government is mandatory.
In grant of prior approval, every effort is made to ensure that the proposals for grant of mineral concessions are in accordance with the proceedings given in Act and Rules and proposals that do not confirm are rejected/returned.
All licence holders and lessees are required to comply with the conditions of the licence or lease deed, which are listed out in Rule 7 (for reconnaissance permit), Rule 14 (for prospecting licence) and Rule 27 (for mining lease) of the Mineral Concession Rules, 1960.
Since the licence or lease is granted by the state government, violations of conditions of licence or lease is monitored by State Government and data is not centrally maintained.
Monday, July 18, 2011
C Limited intersects significant coal in Mongolia
Monday, 18 Jul 2011
Perth based C @ Limited has discovered two significant coal intersections on the Ovorhangay licences after completing its technical due diligence exploration program in southern Mongolia.
The coal licences are located in the South Gobi province and the adjoining Ovorhangay province, which the company holds under an option agreement with a major international developer.
C @ Limited also announced that it has exercised its rights under an option agreement to acquire a total of eight licences in the Ovorhangay and South Gobi provinces from an international coal developer. The licences cover an extensive area of about 625 square kilometres.
Under the terms of the option agreement the consideration for the coal licences was set at USD 7.7million. The company expects that further negotiation will take place over the next few weeks to finalise a definitive sale and purchase agreement for execution.
The licences in Ovorhangay are close to existing mining operations, providing some infrastructure, and easy access to the Chinese coal markets. Interestingly, C @ Limited is known to be in talks with a number of strategic investors.
The two intersections in the Ovorhangay licences are located 280m apart and the first hole produced a coal seam thickness of 60 metres from surface and was estimated to comprise one major coal seam.
The second hole achieved a 40 metre coal seam thickness commencing at 89 metres in depth, which was also estimated to comprise one major seam.
The company said it is still unclear if these two intersects form part of the same coal seam or are two different structures.
Mr Mark Earley MD of C @ Limited said the company is delighted with the results achieved from its due diligence exploration program, particularly those from the Ovorhangay province. He added that "The work done to date only starts to scratch at the surface of the potential of these licences. Upon successful completion of the sale and purchase agreement, the company will embark upon a substantial drilling program on the licenses."
(Sourced from Proactiveinvestors)
Perth based C @ Limited has discovered two significant coal intersections on the Ovorhangay licences after completing its technical due diligence exploration program in southern Mongolia.
The coal licences are located in the South Gobi province and the adjoining Ovorhangay province, which the company holds under an option agreement with a major international developer.
C @ Limited also announced that it has exercised its rights under an option agreement to acquire a total of eight licences in the Ovorhangay and South Gobi provinces from an international coal developer. The licences cover an extensive area of about 625 square kilometres.
Under the terms of the option agreement the consideration for the coal licences was set at USD 7.7million. The company expects that further negotiation will take place over the next few weeks to finalise a definitive sale and purchase agreement for execution.
The licences in Ovorhangay are close to existing mining operations, providing some infrastructure, and easy access to the Chinese coal markets. Interestingly, C @ Limited is known to be in talks with a number of strategic investors.
The two intersections in the Ovorhangay licences are located 280m apart and the first hole produced a coal seam thickness of 60 metres from surface and was estimated to comprise one major coal seam.
The second hole achieved a 40 metre coal seam thickness commencing at 89 metres in depth, which was also estimated to comprise one major seam.
The company said it is still unclear if these two intersects form part of the same coal seam or are two different structures.
Mr Mark Earley MD of C @ Limited said the company is delighted with the results achieved from its due diligence exploration program, particularly those from the Ovorhangay province. He added that "The work done to date only starts to scratch at the surface of the potential of these licences. Upon successful completion of the sale and purchase agreement, the company will embark upon a substantial drilling program on the licenses."
(Sourced from Proactiveinvestors)
Thursday, February 24, 2011
Coal of Africa inadvertently fallen into the gap between SA’s mining legislation & environmental laws
Thursday, 24 Feb 2011By Charlotte Mathews
Case study: Vele coal mine
Coal of Africa, an Australia-listed coal mining company with a secondary listing on the JSE, has inadvertently fallen into the gap between SA’s mining legislation and environmental laws. It is proving to be a costly affair.
The company applied for a mining licence for its Vele coking coal mine in Limpopo two years ago, which it received last March after preparatory site work had already been done. Coking coal, used in making metals like steel and ferrochrome, is uncommon in SA and fetches premium prices.
However, the mine is in the vicinity of Mapungubwe, a site of considerable archaeological and cultural significance. It is also within the buffer area for the proposed Transfrontier Conservation Area, which plans to combine conservation properties within SA, Zimbabwe and Botswana. Though it is not actually within either of these declared areas, concerned groups fear that the visibility, effluents and logistics of an open-cast coal mine will severely affect the sensitive sites, and they have raised strong protests.
Work on the mine was suspended late last year, with R525m already spent, while Coal of Africa addressed concerns raised by Mpumalanga’s department of environmental affairs.
The Save Mapungubwe Coalition, which includes environmental, tourism and heritage groups, has applied for an interdict to stop work on the mine altogether.
Coal of Africa says it is committed to complying with current and any future legislation. By end-January it had submitted the necessary rectification papers under the National Environmental Management Act and had also hosted Unesco representatives and senior officials from the departments of mineral resources and environmental affairs .
Once it receives the go-ahead, it will take another three months to complete the mine.
First production of coking coal will follow shortly afterwards, it says.
Amid the controversy, Coal of Africa’s share price plunged from R17,60 on the JSE last April to a low of R7,69 in November. It has since recovered to around R10,50 — a level that will inhibit its ability to raise equity capital to develop other mines in SA.
Tags:steel mills, ferrochrome, raw material,Vele coking coal mine, Limpopo,open cast coal mine, strong protests, The Save Mapungubwe Coalition, interdict to stop work
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