Mmamabula coal exports unviable

Tuesday, May 13, 2014

Location of African Energy's three coal resources in the central district

A pre-feasibility study at African Energy’s Mmamabula West coal project has cast doubts about the viability of exporting coal from the proposed mine at prevailing coal prices.

The results of the study found that it will take either a fall in rail tariffs or increase in coal price to make the coalmine project sustainable and profitable.

The underground operation would have a run-of-mine output of some 4.4-million tonnes a year, and would require a capital investment of $113-million (P994 million) for an owner-operated mine and coal handling and processing plant over a mine-life of 20-years.

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