Saturday, November 2, 2024

Mmamantswe coal grade meets international export mark standards

Aviva Corporation, the resource  development  miner,  hailed Mmamatswe coal deposit, saying  it has  beaten their expectations as a new study  indicated  huge  reserves that  meet  export markets grades, the  company announced on Monday.

In a statement that was┬á issued through Australia and Botswana Stock Exchange, it┬á stated that the study done by A & B Mylec Pty Ltd┬á “confirmed that export grade thermal coal┬á can be produced”┬á from Mmamantswe project.

“The results are┬á considerably above our expectations and were very positive for the project in the current energy market.

“With virtually no change┬á to the 10 million tonnes per annum┬á run of┬á mine, mine plan prepared by SRK, Mmamantswe could produce 3 million┬á tonnes per annum of export thermal coal and 1- 1.5 million tonnes per annum of┬á domestic┬á power coal with sufficient reserves for 60 years.

“The┬á company retains the flexibility to lift production, thereby brining┬á forward the projects cash flows,” Chief Executive Officer of Avivia, Lindsay Reed, said.

Mmamatswe concession areaÔÇö- which is some 110 kilometers north of Gaborone ÔÇö fell into the hands of┬á Mawana Minerals (Pty) LimitedÔÇöa company owned by┬á the┬á late Paul Ramaloto and his family┬á in 2006 after the discoveries made┬á by BP in the 1980s.

The  family invited Aviva Corporation to a joint venture that would see the Australian company owning 90 percent subject to the fact that it covers full financial budget for prospecting up to a bankable feasibility study.

Since the marriage between the two companies in April  2006, it  has been established that  Mmamantswe project has  895  million tonnes  of  unexploited coal reserve.

It said the  findings by  A & B Mylec  were based on a 20-year mining plan that was prepared by  SRK Consulting  that formed part of the scoping report that was completed in 2009.

“The whole plant yield is enhanced┬á by two stage washing process compared to the previous┬á single stage┬á base case scenario with recoveries lifted to 46 percent,” Avivia said.

It said the preferred process option combines coal from  Zone  A, C and D in a single feed stream for processing , greatly reducing  the complexity of the plant, resulting in lower capital, operating  and maintenance  costs.

However, the  study pointed out that coal from zone B will be discarded  as waste but  added that pit scalping of Zone B could deliver additional feed tonnes at an overall yield of greater than 30 percent. 

Aviva┬á comes at a time when the country is┬á estimated to be having┬á coal resource of┬á 200 billion┬á tonnes ÔÇô enough to supply the power hungry┬á southern African region, which is┬á at the initial stages of industrialization.

Further, the  move widens  Mmamantswe potential  to supply the international markets, including those in the  industrialized nations of the north, China and India, which are also  battling to meet their ever rising energy demands.

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