Subsidiary secures additional coal prospecting rights
25 February 2009
Strategic Natural Resources PLC (”SNR”) is pleased to announce that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd (”Elitheni” or the “Company”) has acquired an additional 26,000ha of new order prospecting rights in the Eastern Cape coalfield, contiguous to its current phase 1,2 and 3 rights measuring 36,000 ha in area.
This brings to a total over 60,000 ha (600 km2) of contiguous prospecting rights the Company has acquired in the heart of the Eastern Cape coalfields. The Company announced last year that it had applied for new prospecting rights given the interest by new markets in the coal and IPSA’s power generation expansion plans. The new prospecting right, dubbed by succession, phase 4, will give the Company a period of 5 years in which to prove coal sufficient to apply exclusively for a 30 year mining right over the most mineable area of this additional land. The Company expects that this new area could in due course add significant additional tonnage to Elitheni’s in situ coal.
SNR’s Chief Executive, Jeremy Metcalfe said “Although the international commodity trade has fallen in comparison with last year’s figures, coal remains a sound investment. Our coalfield is still ideally situated to meet South Africa’s near and long term energy needs and is well positioned to provide a solution to coastal power and energy requirements. Accordingly, we have taken a decision as a company to continue with Elitheni’s planned expansion, in order to be ready for the upswing of commodity markets which we estimate will be in the next 18 - 24 months.”
In addition to the IPSA commercial coal supply agreement signed at the end of last year, the Company is in negotiations with a number of commercial concerns in terms of supply to the industrial steam market in the Eastern Cape.
For further information, please contact:
Strategic Natural Resources plc
David Nel, Chief Executive Officer
+27 (0) 41 374 0842
Jeremy Metcalfe, Communications Director
+44 (0)7785 346 718
Nominated Adviser and Joint Broker - Allenby Capital Limited
Nick Naylor / Alex Price / James Reeve
+44 (0) 20 3328 5656
Joint Broker - SP Angel Corporate Finance Limited
Emin Eyi / Tercel Moore
+44 (0) 207 647 9646
FTI Consulting
Ben Brewerton / Georgia Mann
+44 (0)207 831 3113