COMPANY TO REGISTER FIRST COAL SALES THIS MONTH
Minergy, the company developing a coalmine in Medie village in Kweneng District, has announced it will conduct its first sales this month.
This week, the company, through its Masama Coal Project, announced it has so far exposed 340, 000 tons of coal.
Minergy, which was granted a MiningLicence in August last year, currently mines 110, 000 tons per month, resulting in 70,000 to 80, 000 of sealable coal.
However, its sealable coal target is expected to rise to 100, 000 tons per month early next year. The company are eyeing between P500 – P605 per ton for their coal.
Delivering more positive news, the coal mining enterprise says it is in the process of signing its first long-term contract to deliver 120, 000 tons per annum to a regional industrial customer.
This deal would represent roughly 10 percent ofMinergy’s estimated annual sealable coal.
In its update to stakeholders, the company further says discussions are underway with a number of other interested regional industrial customers who have already tested samples of Minergy coal.
Masama Coal Project, located in the coal-rich Mmamabula coalfields, has an estimated 386 metric tons of coal resources.
Of this amount, roughly 82 metric tons is considered opencastable, giving the mine a lifespan of around 22 years.
The remaining 304 metric tons is considered mineable by underground mining.
Before theopencastable resources are exhausted, Minergy plans to carry out a detailed assessment of underground mining in the area.
In addition, it intends to conduct further exploration on the remainder of the prospecting licence, which covers an area of 352 square kilometers.
“Depending on the economics at the time, opportunities to significantly increase production include increased supply to industrial customers, export opportunities, or power generation,” the company announced in an update this week.
Despite concerns regarding the use of coal for energy production due to promotion for the use of green energy, Minergy seeks to ride on the mineral’s shortage in the region as well as in Asia where demand is reportedly high.
It also seeks to take advantage of the absence of emerging greenfields projects to push its product into the market.
Global coal consumption is reported to have grown last year, but remained below the peak levels of 2.5 percent seen in 2013.
In most developing countries, consumption for the mineral is said to be on a continuous rise while in major developed regions its use is in decline.
Overall, China remains the world’s largest coal consumer and producer, accounting for almost 46 percent of total consumption.