Introduction
Strategic Natural Resources PLC (“SNR”) was established on 5 October 2004 as a vehicle to develop, own and manage natural resource extraction enterprises in Southern Africa. As its first project, SNR acquired control of the Elitheni Coal mine in the Eastern Cape some 200miles north east of Port Elizabeth. The principal asset of Elitheni is the Phase 1 and 2 coal Prospecting Right. The Directors will apply for a mining licence upon completion of the Phase 1 Area prospecting process, anticipated to be in June 2007. Elitheni has applied for an additional right to prospect for coal on the Phase 3 Area. It is anticipated that there will be strong demand for Elitheni’s coal from several markets including the Indwe Power Plant and the Da Gama Textile Plant proposed to be built by Independent Power SA (“IPSA”).
History
The first mines near Molteno and Indwe were opened in 1864 and 1877. The annual coal output from these mines reached a peak between 1900 and 1904 when production averaged 176,000 tonnes per annum. With the discovery of large deposits of coal of a better quality in the former Transvaal and Natal Provinces, production gradually declined to 7,500 tonnes in 1917 and ceased altogether in 1948. However, the Directors believe that, with the development of CFBC Technology and increasing electricity prices large scale mining in this area should now be economically viable. A coal mine based in the Eastern Cape should help to meet the growing demand for power in South Africa.
Elitheni has commenced the work required for the submission of the application for a mining licence in respect of the Phase 1 Area and the Phase 2 Area and on receipt of the final geological and geotechnical survey information, expects to submit this application in quarter 3 of 2007. Based on this planned submission date, the granting of the right is expected to be in quarter 3 of 2008. The mining right will be applicable to the whole Phase 1 Area and the Phase 2 Area.
Elitheni coal and its licences
Elitheni obtained the prospecting rights to 9,283.80 ha in the Guba Hoek / Macubeni area of the Eastern Cape, South Africa in June 2005. In addition on 6 March 2007, Elitheni submitted an application for prospecting rights on further land in this area, to the extent of 15,922.86 ha. On approval of the additional prospecting area, Elitheni will have rights to prospect for coal over 25,206.66 ha of land in the Guba Hoek / Macubeni area. This area has been delineated into the Phase 1 Area, the Phase 2 Area and the Phase 3 Area for the purposes of the Company’s planned exploration progression. Diagrams 1 and 2 below will assist in the explanation of the various phases.
Here follows the Memorandum & Articles in PDF form and the Report & Accounts also in PDF form (2 x Word Documents to be converted to PDF each containing 25-30 pages)
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