Elitheni Coal (Pty) Ltd, a 74percent owned subsidiary of the AIM quoted Strategic Natural Resources, has been granted an exclusive full mining licence by South Africa's Department of Minerals and Energy enabling it to commence underground coal extraction over the 92 square km of land at its deposit at Indwe in the Eastern Cape.
This gives Elitheni the sole right to extract and sell all the coal proven up over the entire 92 square km area. Prospecting over 25km2 of the 92km2 area has ascertained that there are sufficient reserves for Elitheni to supply the first of their contractual obligations to Indwe Power (Pty) Limited for 1 million tonnes of coal per annum for a period of 20 years.
Said Jeremy Metcalfe, SNR’s Chief Executive, “This will now enable Elitheni to move from pure exploration to undertaking major coal production and, based on our results so far, we believe there is a greater abundance of coal reserves over this vast area that we now have full rights to.”
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