9
07.13
mining news
Vlakvarkfontein coal mine
breaks multiple records
Continental Coal Limited reports that its Vlakvarkfontein coal mine
is set to achieve its third consecutive record year of thermal coal
production, domestic coal sales and earnings in FY2013.
Vlakvarkfontein is an opencast contract mining operation located
approximately 90 km east of Johannesburg. The mine is operated
under a joint venture, Ntshovelo Mining Resources, with the com-
pany’s principal South African subsidiary, Continental Coal Limited
South Africa (CCL) holding a 60 % economic interest and having
operating and management control.
Conventional opencast mining of two coal seams, each approxi-
mately 5 m wide, at a strip ratio of 2:1 to produce 1,2 Mt/a of ROM
has taken place since June 2010. With around 11 Mt of JORC-com-
pliant proven reserves, the mine has a remaining life in excess of
seven years. The mine has to date produced in excess of 3,5 Mt of
ROM coal and achieved over 3,1 Mt of thermal coal sales into the
South African domestic market.
In FY2013, Vlakvarkfontein is set to achieve a number of opera-
tional and financial records for the third consecutive year.
In the year to date (for the 11 months ending 31 May 2013), the
mine has produced 1,40 Mt ROM, approximately 16 % above bud-
get. For FY2013, ROM production of around 1,55 Mt is forecast. This
ROM production is 23 % and 70 % above the 1,24 Mt and 0,89 Mt
achieved in FY2012 and FY2011 respectively.
Thermal coal sales of 1,21 Mt have been achieved in the year to
date, with total sales of 1,33 Mt forecast for FY2013. Coal sales for
FY2013 are forecast to be 5 % and 100 % above thermal coal sales
of 1,27 Mt and 0,60 Mt achieved in FY2012 and FY2011 respectively.
For FY2013, Vlakvarkfontein is now forecast to achieve record
sales revenue of approximately R244 million and a record gross op-
erating profit of R80 million. Gross operating profit for FY2013 is
forecast to exceed FY2012’s gross operating profit by over 50 %.
“The Vlakvarkfontein coal mine has been a real success story for
Continental. It was our first coal mine into operation, a true green-
field project development and first coal production was achieved
within 12 months of its acquisition. The operation has fully repaid all
its capital development costs and is forecast to continue to gener-
ate free cash flow and dividends to its shareholders over the next
seven years,” comments Continental Coal’s Chief Executive Officer,
Don Turvey.
Contractor mobilises for Mengo
potash project in the Congo
TSX-listed MagIndustries Corp reports that the first ship carrying
construction equipment and materials for construction of the com-
pany’s Mengo potash project in the Republic of Congo arrived in
Pointe Noire on June 12, 2013.
The cargo – with a total weight of about 4 900 tonnes – originated
from the Port of Shanghai, China. It includes some 2 000 tonnes of
steel re-bar, 1 000 tonnes of cement, 40 trucks, 12 generators and
a gravel crushing plant. The shipment also contains various pieces
of earthmoving equipment including an excavator, land leveller,
concrete mixer, pile driving machine, weighbridge and a concrete
pump.
The shipment, organised by the general contractor for the project,
East China Engineering Science and Technology Co, Ltd (ECEC), is
a major step in the mobilisation of ECEC and its subcontractors for
the full start of construction of the various facilities and installations
required for the project.
Mengo, which involves the solution mining of carnallite, has a
design capacity of 1,2 Mt/a of potash fertiliser to supply growing
demand from major markets. The implementation of this strategic
project, says MagIndustries, will position the Republic of Congo as
the first potash producer in Africa.
